Bitcoin trades in a consolidation phase as market participants await Federal Reserve Chair Powell's December guidance on monetary policy. Despite improving liquidity indicators and a 92% probability of a rate cut, traders remain cautious following November's volatility triggered by hawkish central bank commentary. The cryptocurrency has retested the $80,000 zone and its 100-week moving average, both historically significant support levels during previous cycles.

Bitcoin faces a pivotal moment as the Federal Reserve prepares for its December policy meeting with markets pricing in a 92% probability of a rate cut. Despite improving liquidity conditions, traders remain cautious and await clarity on monetary policy direction before deploying capital. The cryptocurrency has stabilized after testing the $80,000 level and the 100-week moving average, support zones that historically hold during bull cycles.

Bitcoin fell below $90,000 on Friday amid over $200 million in leveraged long position liquidations. The decline followed multiple failed attempts to break resistance between $92,000 and $94,000 earlier in the week. Market volatility surged as fear indicators climbed across major trading platforms.

Bitcoin dropped below $90,000, prompting analysts to assess whether a deeper pullback is underway. Veteran analyst Peter Brandt identified a broadening formation pattern and suggested the recent rally to $94,000 may have completed an upper retest, with potential downside targets at $80,200. U.S. spot Bitcoin ETFs recorded positive inflows in eight of the last ten trading sessions following a month of net withdrawals.

A CoinTab dataset shows 73% of publicly tracked Bitcoin-holding companies carry debt, with 39% owing more than their BTC is worth. When Bitcoin dropped from $122,000 to $107,000 on October 10, 84% of these firms saw share prices decline by an average of 27%. The data exposes structural vulnerabilities tied to leverage and volatile treasury assets among corporate BTC holders.

Bitcoin's December downturn has brought the cryptocurrency to a critical support level at $82,000. Data show this price point marks the convergence of spot ETF average purchase costs and the True Market Mean for active investors. Market analyst Burak Kesmeci noted on December 5 that price action around this threshold will determine the asset's near-term direction.

Two Casascius physical coins, each containing 1,000 BTC, were redeemed Friday after remaining inactive for over 13 years, unlocking a combined value exceeding $179 million. One coin was produced in October 2012 when Bitcoin traded at $11.69, while the other originated in December 2011 at a BTC price of $3.88, onchain data show.

Bitcoin retreated to $89,605 after nearing $100,000, while major altcoins including Ethereum and Solana also declined. National Bank of Canada disclosed a $273 million position in MicroStrategy, representing 1.47 million shares, according to data from BitcoinTreasuries.NET. The investment provides the institution with indirect Bitcoin exposure through equity markets rather than direct cryptocurrency holdings.