Bitcoin is currently at a crucial technical level that needs protection to avoid significant losses, as highlighted by crypto analyst “Daan Crypto Trades.” He pointed to the 0.382 Fibonacci retracement level, which is a vital support and resistance point in market cycles. “This is a critical area for the bulls to maintain,” he mentioned, warning that a drop below this level could pull Bitcoin (BTC) down to its April lows around $76,000. “It essentially forms the last major support before revisiting the April lows, which would disrupt the long-term market structure.” Late Sunday, Bitcoin experienced a sharp leveraged position wipeout, with liquidations occurring across both long and short positions. The cryptocurrency briefly dipped below $88,000 but swiftly rebounded to over $91,500. “This is yet another instance of market manipulation during low-liquidity weekends, aimed at eliminating leveraged positions on both sides,” noted “Bull Theory.” BTC is currently trading within a crucial support/resistance zone, according to Daan Crypto Trades.
All eyes are on the upcoming Federal Reserve meeting this week. The Federal Open Market Committee will wrap up its monetary policy meeting on Tuesday and Wednesday, with a 0.25% rate cut widely anticipated. Since the October rate cut, crypto markets have seen diminished momentum, as Fed Chair Jerome Powell indicated a data-dependent, non-linear easing approach rather than a straightforward rate-cutting cycle, explained Markus Thielen, head of 10x Research, in a note shared with Cointelegraph. He further noted that the market is anticipating a 25-basis-point cut on December 10, followed by a cautious stance, “mirroring October’s somewhat hawkish approach and maintaining moderate pressure towards the year-end.”
“With trading volumes already low and ETF flows negative, the potential for upward movement is limited while Bitcoin remains within the $70,000–$100,000 range, and implied volatility continues to decrease, making downside risk more significant than upside potential.”
The Fed’s outlook statement will be crucial. Henrik Andersson of Apollo Capital echoed this view, stating to Cointelegraph that while a Fed rate cut this week is already expected, the market's direction will depend on the outlook statement. He remains cautiously optimistic for the next year. “With the Fed chairman set to be replaced in May next year, we might see more interest rate cuts in 2026, which would likely benefit risk assets, including cryptocurrencies.”
Nick Ruck, director of LVRG Research, concurred, telling Cointelegraph that beyond the Fed meeting, upcoming jobs and inflation data releases “could trigger renewed liquidity inflows and drive a broader market recovery if they align with expectations for continued monetary easing.”