Bitcoin News Today: Bitcoin's Support Test Could Determine UNI's Fate

As cryptocurrency markets grapple with a broader correction, traders of UNI, the governance token of the Uniswap decentralized exchange, are closely monitoring a critical price zone around $94,000-$95,000 for potential buying opportunities.

This level aligns with key technical support areas identified in Bitcoin's recent price action, which many analysts view as a barometer for the broader crypto market. Bitcoin's weekly chart has shown a 20% correction from its all-time high of $126,199, hitting a six-month low near $95,933 in early November.

Technical indicators suggest bearish momentum is gaining traction. The RSI on Bitcoin's weekly chart has dipped to 41, below its neutral 50 threshold, while the MACD histogram remains in negative territory, signaling a continuation of the downward trend. On the daily chart, Bitcoin faced rejection at the 38.2% Fibonacci retracement level at $106,453 and has since declined to around $96,900. If the price closes below the daily support at $97,460, it could test the 61.8% Fibonacci level at $94,253. Traders are watching whether Bitcoin can hold above this critical floor, as a breakdown could extend the correction toward the 100-week EMA at $85,508.

The broader market context adds to the bearish sentiment. Tight liquidity conditions, exacerbated by the U.S. government shutdown, have exacerbated downward pressure on crypto assets. Over $1.1 billion in U.S. spot bitcoin ETF outflows last week further deepened the selloff. However, analysts remain cautiously optimistic. Edward Carroll of MHC Digital Group noted that liquidity strains and shifting rate expectations are temporary headwinds, and a rebound in government spending could reinvigorate the market.

For UNI traders, the key is whether Bitcoin stabilizes near $94,000-$95,000, as this would likely trigger a broader risk-on sentiment in crypto. Rachael Lucas of BTC Markets highlighted that Bitcoin's current pullback reflects tight funding conditions rather than a breakdown in fundamentals. A recovery to the 38.2% Fibonacci level at $106,453 could reignite buying interest in altcoins like UNI, which has historically followed Bitcoin's lead.

Meanwhile, macroeconomic factors remain in focus. The U.S. Treasury's recent comments on resolving the rare earths trade dispute with China by Thanksgiving aim to ease global economic tensions, while upcoming economic data releases, including inflation and trade balance figures, could influence market sentiment.

In the short term, UNI traders are advised to monitor Bitcoin's performance against the 50-week EMA at $103,000. A sustained break below this level would confirm a bearish trend, but a rebound could signal the end of the correction phase. As the market awaits liquidity relief and potential U.S. rate cuts, strategic buyers are positioning for a potential rebound in the $94,000-$95,000 range.

---

: Bitcoin Weekly Forecast: The Capitulation Phase Unfolds

Bitcoin Hits Six-Month Low Near $95,000; Analysts Optimistic for Bullish Turn

US Treasury's Bessent: Rare Earths Deal Will "Hopefully" Be Done by Thanksgiving

Economic Calendar