Bitunix Analyst: Bank of Japan's December Rate Hike Discussion, BTC Faces Liquidation Pressure

BlockBeats news, on December 1, Bank of Japan Governor Kazuo Ueda released the clearest hawkish signal to date, leading the market to raise the probability of a December rate hike by the Bank of Japan to 64%. The yen strengthened, and short-term Japanese government bond yields hit a new high since 2008. Affected by expectations of Japan advancing policy normalization early, global fund flows have seen a repricing, with the dollar and high-volatility assets coming under pressure simultaneously. Meanwhile, a sudden diplomatic friction between the United States and Venezuela escalated, further cooling risk appetite swiftly. Against the backdrop of rising macro risk aversion, the crypto market experienced severe fluctuations. BTC suffered a significant decline today during the Asian session, accompanied by a rapid accumulation of liquidation volume. According to the liquidation map, a high-density liquidation zone formed in the $92,300 area, becoming the main axis of this round of decline; after the price broke through this area, the downward trend accelerated, consecutively touching areas of liquidity stacking at $88,300, $86,200, and others, currently still seeking support from deeper layers of liquidity below. In terms of short-term structure, BTC has lost the previous sideways range, with clear resistance levels above at the important liquidation bands of $90,300 and $92,300; potential support below lies in the densely liquidated areas of $86,200 and $84,300. If market sentiment continues to lean bearish, testing a larger liquidity pool around $82,300 below cannot be ruled out. Bitunix analyst's view: The hawkish shift in the Bank of Japan's policy tone combined with sudden geopolitical events is driving the market to reprice, putting short-term pressure on risk assets. The structural break in BTC is a typical trend of “high-level liquidation stacking being detonated all at once”. Moving forward, it is necessary to observe whether funds can form a reabsorption in the lower liquidity pool. The mid to short-term market still leans towards a volatile downward trend, suggesting that structural repair and capital replenishment should be the main focus for future observations.