The Bank of Japan suddenly turns hawkish + geopolitical black swan, BTC high-level liquidations are cleared in one go.

[Block Rhythm] On December 1st, the speech of Bank of Japan Governor Kazuo Ueda shook the market. The hawkish signals conveyed were clearer than ever before—market expectations adjusted immediately, and the probability of a rate hike in December skyrocketed to 64%. The yen responded by strengthening, and the short-term Japanese government bond yields reached a new high not seen since 2008. This change came too suddenly, and global capital flows began to be reshuffled, with the dollar and those high fluctuation assets being hit simultaneously. Just at this time, diplomatic tensions between the United States and Venezuela suddenly escalated, igniting safe-haven sentiment.

In the crypto market, the fluctuations are intense and direct. BTC started to plummet in the Asian session today, with the liquidation volume surging up. By looking at the liquidation map, we can see that a large number of long positions piled up at the $92,300 mark, which became the first breaking point of this round of decline. After the price broke through, the downtrend couldn't be stopped, consecutively smashing through the liquidity clusters at $88,300 and $86,200, and it is now exploring deeper support levels.

From a technical structure perspective, BTC has already broken below the previous sideways trading range. Looking upward, 90,300 and 92,300 are two clear resistance levels, where the density of accumulated liquidation orders is quite high. On the downside, 86,200 and 84,300 may provide support, but if the sentiment continues to collapse, it is possible to test the larger liquidity pool around 82,300.

In simple terms, the sudden hawkish shift of the Bank of Japan combined with geopolitical black swans has forced the market to reprice risk assets. This wave of BTC is a typical “high liquidation stacking all at once” trend. Next, we need to see if funds can stabilize in those liquidity-rich areas below and accumulate again. In the short term, the market is likely to continue to oscillate and consolidate, and the focus should be on signs of structural recovery and capital inflow.