Crypto Market Under Pressure: Bitcoin Falls to $88,000 – Tron Defies Downward Trend

Bitcoin and Ethereum Under Selling Pressure

The crypto market is showing significant weakness at the start of the week. Bitcoin has fallen to $88,000, continuing the disappointing performance that began in November ^[2]. Ethereum is also recording price losses, while most altcoins are similarly under pressure.

A disappointing crypto November is being followed by an equally weak crypto December, as current market developments show ^[2].

Monetary Policy Weighs on Risk Appetite

Responsible for the recent price decline is a global monetary policy that is turning out to be less expansive than many crypto investors had expected ^[2]. While the U.S. Federal Reserve (Fed) cut interest rates by 25 basis points last Wednesday to a range of 3.5 to 3.75 percent, another rate cut in January could be off the table ^[2].

Additional pressure on the market could come from the Bank of Japan. The central bank may raise its key interest rate by 25 basis points to 0.75 percent this week – the highest interest rate level in three decades ^[2]. Rising Japanese bond yields have recently dampened investor risk appetite and indirectly weighed on the prices of Bitcoin, Ethereum and other cryptocurrencies ^[2].

Tron Shows Relative Strength

While the majority of the crypto market is struggling with losses, one top altcoin is bucking the trend ^[2]. Over the past 12 to 24 hours, the TRON price has fluctuated between various support and resistance levels ^[1].

Short-term Forecast for Tron

In the short term, the forecast for TRON remains slightly bullish ^[1]. Support levels are at $0.2782 and $0.2773, while resistance levels have been identified at $0.2827 and $0.2904 ^[1].

A stable daily close above $0.2827 could open the path to $0.3000 ^[1]. However, a break below $0.2750 would significantly increase the probability of a deeper correction ^[1]. Analysts recommend monitoring volume and RSI as trigger signals, with heightened caution advised if the price falls below $0.2740 ^[1].

Outlook Remains Uncertain

The current market situation demonstrates how heavily cryptocurrencies are influenced by macroeconomic conditions. The combination of the Fed's cautious interest rate policy and potential rate hikes in Japan creates a challenging environment for risk assets such as Bitcoin and Ethereum. Whether Tron can maintain its relative strength remains to be seen.