Kumar Basanta

As of today, Bitcoin is trading around $86,000–$87,000 USD, down approximately 5% from yesterday's close amid a broader market correction. This follows a sharp drop from over $90,000 at the start of December, triggered by low liquidity, mass liquidations (over $1 billion in the last 24 hours), and algorithmic resets. The Fear & Greed Index sits at 28 (extreme fear), with RSI on shorter timeframes (1H/4H) nearing oversold levels (35–38), suggesting potential for a short-term bounce. However, bearish signals like a monthly "death cross" (50-day MA below 200-day MA) and weak ETF inflows ($3.48B net outflows in November) keep downside risks alive.
Broader context: Bitcoin hit an all-time high of ~$126,000 in October 2025 but has since corrected ~30%, testing post-halving cycle resilience. December historically averages +9.7% gains, but current macro headwinds (e.g., Fed's December meeting on Dec 18, potential QT end, and inflation data) could amplify volatility. On-chain data shows whale accumulation (new addresses at 7-year highs), but distribution from large holders persists.

Suggested Trading Setup: Long BTC/USD (Dip Buy Strategy)
Based on aggregated signals from analysts (e.g., DailyForex, Coinpedia, and X traders like @Tony_Sycamore), the consensus leans toward a bullish reversal if $80K holds, targeting a December rebound. This is a medium-risk long setup assuming stabilization above key supports—ideal for swing traders. Use 3–5x leverage max; position size at 1–2% of portfolio.
Direction: Buy (Long)
Entry Zone: $85,500–$86,500 (current range; scale in on dips to $85K for better R:R)
Target (Take Profit):
TP1: $90,000 (short-term, ~5% upside; partial exit 30% of position)
TP2: $95,000 (mid-December, ~10% upside; partial exit 40%)
TP3: $100,000 (EOM stretch, ~16% upside; trail remaining 30%)
Stop Loss: $80,000 (below major support; ~7% risk from entry; tightens to $83K after TP1 hit)
Risk-Reward Ratio: 1:2+ (potential 14% reward vs. 7% risk)
Timeframe: 1–4 weeks (monitor Fed CPI on Dec 11 and FOMC on Dec 18 for catalysts)
Invalidation: Close below $80K shifts to bearish (target $75K, then $70K).
Rationale: Oversold conditions + historical December seasonality support a flush-then-grind higher. A Fed pivot (85% rate cut odds) could spark 10–15% rally to $100K. If supports break, flip to short with targets at $83K/$81K (per X signals). NFA—DYOR and manage risk amid volatility.
#BTC
#ETH
#BNB