Bitcoin (BTC) slipped under the $88,000 mark as the week drew to a close on Sunday, with traders bracing themselves for a significant US macroeconomic event. Key points of this development include Bitcoin experiencing sudden volatility, nearly touching $87,000. Many traders are anticipating weaker BTC price movements ahead of the Federal Reserve's interest-rate decision. Analysts suggest that it is crucial for bulls to maintain the $86,000 level.
Data from Cointelegraph Markets Pro and TradingView highlighted a resurgence in BTC price fluctuations, as BTC/USD shed $2,000 in just two hourly candles. The weekend ended quietly, potentially paving the way for a new "gap" to form in CME Group's Bitcoin futures markets. According to previous reports by Cointelegraph, such gaps are typically "filled" quickly once the new macro trading week kicks off.
Trader Killa pointed out that in the past six months, every single CME gap has been filled. Killa also noted in another post that Mondays often set the tone for the rest of the week’s price movement, with weekend trading playing a crucial role. He explained that if there is no price surge over the weekend, the likelihood of a pivot low forming on Monday increases. Conversely, a weekend pump makes a Monday pivot high more probable.
Meanwhile, market participants are closely monitoring the US Federal Reserve's decision on interest-rate changes, the main macroeconomic focus of the week. Data from CME Group’s FedWatch Tool indicates that markets are largely expecting a 0.25% rate cut following Wednesday's Federal Open Market Committee (FOMC) meeting.
Private investment manager Peter Tarr emphasized the significance of the rate decision, noting its impact on liquidity, risk appetite, and market positioning. He added that alongside the rate call, a delayed JOLTS report is also worth attention, with most market players anticipating a 25 basis point cut.
Historically, Bitcoin tends to face downward pressure as FOMC announcements approach, often triggering substantial volatility as markets interpret Fed officials’ language for clues on future policy directions.
Crypto trader and analyst Michaël van de Poppe suggested that anxiety surrounding the FOMC could push Bitcoin down to $87,000. He predicted that once this period of uncertainty passes, Bitcoin could quickly bounce back, resuming its uptrend. He anticipates a break past $92,000, potentially setting the stage for a rally towards $100,000 in the next one to two weeks as the Federal Reserve eases quantitative tightening, implements rate cuts, and increases the money supply to stimulate the business cycle.
Van de Poppe identified $86,000 as the critical support level for bulls. This article serves only for informational purposes and does not offer investment advice or recommendations. Every investment and trading decision carries risk, and readers are encouraged to perform their own research.