Data from BNC revealed a 1.2% daily decline for BTC/USD, compounding losses from a weekend rally that failed to hold above $99,500. Bitcoin has now retraced 15% from its recent all-time highs last week, leaving bulls frustrated.

Source: Brave New Coin Bitcoin Liquid Index

Traders Brace for New Lows

The broader market sentiment leans cautious, with many analysts now expecting further downside and the potential for a multi-week correction. Rekt Capital wrote that, “#BTC is offering more confirmation for additional downside than reasons to be bullish for the moment. However, once Bitcoin clears its historically corrective Weeks 7, 8 & 9 in Price Discovery – the opposite will be true. It’s Christmas and this retrace is a gift.

Source: X

On the other hand, analyst Dave The Wave sees support for Bitcoin ahead. He posted, “Shorter-term BTC fib extension target on the chart for months effectively met [fell short by 1%]. A ton of support on multiple time-frames coming through, and above the buy zone from which price departed a year ago now. 170K technical target.”

Source: X

Macro Headwinds Add to Market Woes

Bitcoin’s price struggles come amid a broader atmosphere of economic uncertainty, exacerbated by a hawkish stance from the Federal Reserve. Last week’s Fed update dampened hopes for near-term interest rate cuts, with CME Group’s FedWatch Tool estimating just an 8.6% chance of a rate reduction in the next FOMC meeting.

For now, Bitcoin traders remain divided between cautious optimism and concern, with key levels like $90,000 and $85,000 in focus as the holiday season unfolds. Whether bulls can stage a recovery or face further drawdowns remains to be seen, but macroeconomic pressures are likely to remain a defining factor.