👑 Bitcoin ( $BTC ): Recovery or Another Trap?

Market Capitalization: $1.75 trillion.

Bitcoin bounced slightly on Wednesday, trading around $87,300 after bulls managed to defend the key support level of $85,000.

🟡 However, it's too early to celebrate ahead are two critical events that could determine the short-term direction.

What's happening now❔

🗣Yesterday's US employment data came out mixed. On one hand, more jobs were added than expected (64,000 versus a forecast of 45,000).

🗣On the other hand, unemployment rose to 4.6%, the highest since September 2021. Rising unemployment could push the Fed toward new rate cuts, which is traditionally favorable for Bitcoin.

🗣Over the past 24 hours, $38 million in long positions were liquidated, indicating a "short squeeze" traders betting on decline were caught off guard by the upward movement.

What's next❔

🗣Tomorrow, December 18th, the US Consumer Price Index (CPI) report will be released.

🗣Economists expect growth to 3.0-3.1% year-over-year.

🗣If the figure comes in above forecasts, the Fed may pause rate cuts in January, which would negatively impact Bitcoin.
The second important factor is the Bank of Japan's decision on Friday.

🗣Markets estimate a 98% probability of a 25 basis point rate hike. Historically, rate hikes in Japan have negatively affected Bitcoin and altcoins due to carry trade unwinding.

Expert opinion❕

💬 David Hernandez from 21shares notes: "Strong employment data presents a short-term obstacle for Bitcoin.

💬 However, rising unemployment creates a contradictory signal. The long-term outlook for Bitcoin remains unchanged."

Trading guidelines:📈 📉

📈 Holding above $87,000 possible growth toward $90,000-$93,000.
📉 Break below $83,000 risk of falling to $80,000 and even $74,000.

Conclusion:
Bitcoin is in a critical zone. The next two days will show whether recovery will begin or correction will continue.

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