The Bank of Japan adopts a hawkish stance + geopolitical risks rise, BTC has fallen below the $90,000 mark today.

On December 1st, 2023, the Governor of the Bank of Japan, Kazuo Ueda, made a bold statement – the tone of his speech was the firmest it has ever been. The market immediately caught on, raising the probability of a rate hike in December to 64%. The yen strengthened in response, and the yield on short-term government bonds soared to its highest point since 2008.

The chain reaction of this incident came quickly. Global funds began to reassess whether Japan would tighten its policies earlier, and the dollar, along with those high-volatility assets, took a hit. Just at this moment, the diplomatic friction between the United States and Venezuela suddenly escalated, igniting risk-averse sentiment and extinguishing risk appetite.

The crypto market naturally couldn't escape either. Today, Bitcoin dropped sharply in the Asian market, and the liquidation volume surged. Looking at the liquidation map, it can be seen that there is a large area of high-density liquidation orders piled up at $92,300, like a fuse—once the price breaks below this level, the decline starts to accelerate, consecutively breaking through the liquidity accumulation points of $88,300 and $86,200. It is still looking for support at deeper positions.

From a short-term structure perspective, BTC has already fallen out of the previous sideways range. Looking upwards, the two liquidation zones at 90,300 and 92,300 are clear resistance levels; looking downwards, 86,200 and 84,300 are potential supports, but if the market continues to lean bearish, it cannot be ruled out that it will test the larger liquidity pool around 82,300.

In simple terms, the Bank of Japan's shift to a hawkish stance combined with geopolitical sudden events is causing the market to reprice. This wave of BTC is a typical high-level liquidation being wiped out in one go, and we'll see if the funds can re-enter these liquidity pools below. In the short to medium term, the market is likely to remain weak and volatile, so just keep an eye on structural repairs and capital movements.