Bitcoin (BTCUSD) retreated on Friday, settling below the psychological $100,000 level, after reaching an all-time high of $103,719.4 on Thursday. This 4% decline, which has led the crypto to currently trade around $98,358, reflects profit-taking by institutional investors ahead of U.S. interest rate announcements.
The recent market optimism was linked to the pro-cryptocurrency policies of President-elect Donald Trump, who announced David Sacks as an advisor on cryptocurrencies and artificial intelligence. This move, along with other favorable appointments, raised expectations of friendlier regulations for the sector. However, strong employment data in November has reshaped monetary policy expectations. Non-farm payrolls increased by 227,000 jobs, exceeding the forecast of 200,000, while the unemployment rate remained at 4.2%. This outlook reduces the possibility of immediate interest rate cuts by the Federal Reserve, increasing pressure on risky assets.
Other cryptocurrencies also posted declines. Ethereum (ETH) fell 0.7%, although it maintains a weekly upside of 8%, while XRP retreated 3% after reaching six-year highs due to favorable regulatory speculation.
If we look at the chart, a bullish candlestick is currently forming, so it is not expected that the price will collapse. Its control point (POC) is located near $99.817 and the pressure from the delta zones is mostly bullish, so it is likely to regain directionality soon. RSI at 48.10% is slightly oversold.
The market remains attentive to regulatory and economic developments that could define the future direction of the crypto sector. Ion Jauregui - ActivTrades Analyst
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