Bitcoin (BTC) remains within striking distance of the $100,000 milestone, but analysts stress that bulls must hold critical support levels to maintain momentum.
Bitcoin Consolidates After All-Time Highs
On November 15, Bitcoin retraced from its new all-time highs of $90,000, dipping below $87,000 before the daily close. The pullback came as traders focused on retesting key support levels after the cryptocurrency’s record-breaking rally on November 13.
Rising Inflation Sparks Market Jitters
The release of the US Producer Price Index (PPI) for October reignited inflation concerns. The PPI rose 2.4%, slightly exceeding expectations, while core inflation also increased above 3%. These figures, combined with the Federal Reserve’s recent interest rate cuts, have complicated monetary policy decisions.
“This is a nightmare situation for the Fed,” noted The Kobeissi Letter on X. “If you raise rates, we head into a recession; if you cut rates, inflation rises further.”
As inflation data rolled in, the CME Group’s FedWatch Tool revealed a sharp decline in the likelihood of further rate cuts at the Fed’s December meeting—from 82% on November 14 to 58% the following day.
Key Levels for Bitcoin Bulls
Traders have identified $86,000 to $87,000 as pivotal for Bitcoin to sustain its bullish momentum.
- Skew, a prominent trader, observed aggressive selling attempts at these levels, highlighting the risk of further declines if support fails.
- Keith Alan, co-founder of Material Indicators, argued that a retest of $86,000 could strengthen Bitcoin’s price trajectory, allowing for a more robust push toward $100,000.
“A retest of support at $86K would be healthy for BTC and offer insight into whether the momentum behind this rally can sustain a run to $100K,” Alan told his followers.
$100K Target by Thanksgiving?
Alan suggested that Bitcoin could hit the psychological $100,000 mark by Thanksgiving on November 28, provided it maintains its current short-term upward trend.
“If support fails at the line, price will search for support in the $75K–$76K range,” he warned.
Bitcoin’s Path Forward
Bitcoin’s trajectory remains heavily influenced by macroeconomic factors, including inflation and Federal Reserve policies. To reach $100,000, bulls must defend critical support levels and sustain momentum despite headwinds.
