Market Overview
Bitcoin (BTC) continued its downward trajectory on November 15, circling key local lows. The BTC/USD pair saw price action testing support levels ahead of potential retests at higher resistance. The broader market sentiment remained cautious amid mixed economic data and geopolitical tensions.
Technical Analysis
The 1-hour chart for BTC/USD showed a price dip below $87,000 into the close on November 15. After reaching new all-time highs of $90,000 earlier in the week, Bitcoin struggled to break out above those levels as bears took control of sentiment.
Economic Indicators
U.S. inflation data highlighted the possibility of stagflation—a scenario characterized by high inflation and weak economic growth—potentially pushing the Federal Reserve toward dovish policy stance. The October print of the Producer Price Index (PPI) showed inflationary forces returning, with PPI at 2.4% versus expectations of a slight uptick.
Fed Watch
CME Group’s FedWatch Tool indicated that the probability of another rate cut by the Federal Reserve in December stood at 58% on November 15, down from 82% the day before. This further fueled bearish sentiment among market participants.
Trader Warnings and Analysis
Bitcoin traders have circled key resistance levels around $87,000, with some warning that this area could act as a critical checkpoint. Traders have pointed to support at $86,000 as a potential turning point for the BTC/USD pair.
Price Action
Bitcoin price faced aggressive selling pressure in the lower timeframes, with traders warning of possible retracement attempts near the aforementioned levels. Some analysts have suggested that BTC might consolidate around these areas before making further moves.
Long-Term Outlook
The broader market sentiment remains bearish ahead of key U.S. economic data points later in the week. With inflation expectations rising and Fed Chair Jerome Powell signaling dovishness, Bitcoin’s ability to break out above $90,000 could be under serious threat.
Key Levels of Interest
- Support Resistance: The area around $87,000 stands as a critical checkpoint for Bitcoin price action.
- Potential Targets: If support holds, BTC may consolidate or test higher resistance at $95k.
Conclusion
Bitcoin’s price is set to remain volatile ahead of key economic data points and the Fed’s monetary policy meeting. Traders will need to closely monitor key levels of interest in coming sessions to determine the direction of market sentiment.