Bitcoin Struggles Below $95,000 as Market Awaits Fed Decision

Bitcoin continues to face significant headwinds as the cryptocurrency trades below the critical $95,000 threshold. The digital asset, which previously reached an all-time high of $124,500, has now entered an extended consolidation phase, leaving investors questioning the sustainability of the current bull cycle. At the time of writing, Bitcoin is trading at $90,617, representing a 0.98% decline over the past 24 hours. Bitcoin price chart, Source: CoinMarketCap Tom Lee Maintains Bullish Stance Tom Lee, Chief Investment Officer at Fundstrat and Chairman of Bitmine Immersion, remains optimistic about Bitcoin's near-term prospects despite the recent downturn. In a recent CNBC interview , Lee predicted that Bitcoin would climb above $100,000 by the end of the year. Lee's confidence stems from his positive outlook on broader financial markets. He pointed to the S&P 500's resilience and its ability to recover from recent declines. However, he acknowledged that unexpected monetary policy changes could trigger a 20% market correction, though he believes any such pullback would be short-lived. The analyst views cryptocurrency markets as a precise indicator of investors' risk appetite. He noted that the recent market turbulence has effectively deleveraged the system, potentially setting the stage for a faster recovery compared to the eight-week rebound witnessed in 2022. The cryptocurrency market experienced a severe shock on October 10 when a pricing error triggered widespread automated liquidations. Lee described the event as unprecedented in Bitcoin's 15-year history. The technical glitch resulted in nearly two million account liquidations and forced approximately one-third of market makers out of business. This extreme volatility highlighted the excessive leverage that had previously propelled Bitcoin beyond $120,000. The cleanup, according to Lee, was necessary to remove unhealthy speculation from the market. He suggested that the current weakness reflects ”sharks” covering losses from the October event rather than fundamental deterioration. Technical Indicators Signal Caution Despite optimistic predictions from market observers, Bitcoin's technical picture remains challenging. The cryptocurrency has fallen below its 365-day moving average, a development that typically indicates bearish momentum. Traditional market indicators confirm that sellers maintain control of price action. Source: Glassnode The Crypto Fear and Greed Index currently sits in the ”Fear” zone, reflecting widespread caution among market participants. This sentiment suggests that a significant amount of time may be needed before confidence returns to its previous levels. Fear and Greed Index, Source: CoinMarketCap Market structure shows Bitcoin struggling to regain upward momentum after its sharp decline from all-time highs. The inability to sustain prices above $95,000 has reinforced concerns about the immediate trajectory of the bull market. The path forward for Bitcoin now hinges largely on the Federal Reserve's upcoming interest rate decision in December. Lee believes the market weakness should resolve by late November or early December, contingent on policy developments.