Bitcoin Price Tests $90K Support, Where’s the Bottom At?

Bitcoin reached a daily low of $88,642 on the crypto exchange Coinbase today, marking the lowest price that the currency has traded since April of this year. 

Today's dip showed an extension of selling pressure that has been plaguing Bitcoin, and almost all other digital assets for that matter, over the last 6 weeks. While BTC was able to recover above $90K today, the fact that the asset is down by over 11% over the past week shows that selling pressure is still firmly entrenched in the market.

The persistent weakness is being reinforced by ETF outflows, with BlackRock’s IBIT and other Bitcoin funds registering nearly $3 billion in redemptions so far in November. But other than that, there are several outside reasons as to why crypto and Bitcoin continue to underperform.

Stack 10% More on Your First BTCC Deposit

Start Trading

Fed Uncertainty Weighing In

Whereas a month ago, a third consecutive rate cut was almost a given, today the market is not as optimistic. The Federal Reserve's inability to effectively assess inflation and employment data -- due to the 43-day Government shutdown -- has left policymakers without the clarity they need to justify further easing.

In fact, many FOMC members have disclosed uncertainty about rate cuts for December, citing the lack of reliable economic indicators and the risk of misjudging the balance between inflation control and growth support.

The CME FedWatch tool is now heavily favoring that borrowing costs will remain locked at the 3.75-4.00% margin on December 10, pushing the next potential rate cut to January 28. 

In previous cycles this year, speculative markets like crypto and stocks have been pricing Fed decisions way ahead of the curve. This means that, while uncertainty and economic pressure are the norm as of right now, the sentiment could shift soon after the next FOMC meeting if the Fed points to a rate cut next year.

Stack 10% More on Your First BTCC Deposit

Start Trading

Where's The Bottom?

Bitcoin is now trading on a clear bearish descent, as the asset finds itself 28% lower from its October peak. While bulls are currently holding on to the $90K level, we've seen bears smash through several theoretically strong support zones over the past few weeks. 

The $90k margin served as Bitcoin support for November 2024 - February 2025, making it an important price action zone for the currency. However, price action matters little in front of the broader market context and momentum. Failure to hold onto that line could push $BTC to test $83k -- and if things really hit the gutter, the currency could revisit its 2025-low of $74,500.

Aside from macro sentiment, crypto’s downturn is also being affected by weakness in U.S. equities, particularly the technology sector. Today, Nvidia, the company leading the "AI boom" on Wall Street, reported a stronger-than-expected Q3 earnings.

The NVDA stock jumped by nearly 3% in the day following that report. If this sentiment continues throughout the week, it would likely reflect a much-needed short-term relief for digital assets.