Bitcoin (BTC) dropped below $88,000 as the weekly close on Sunday approached, with traders observing signs of weakness ahead of a significant US macroeconomic event.
Key Highlights:
Bitcoin exhibited sharp volatility as the weekly close neared, falling close to $87,000.
Traders are anticipating a softer BTC price trend leading up to the Fed’s interest-rate decision.
Analysts advise that bulls must maintain above $86,000.
BTC Price Fluctuates as Weekly Candle Nears Completion
According to data from Cointelegraph Markets Pro and TradingView, BTC price volatility has returned, with BTC/USD seeing a $2,000 drop within two hourly candles.
This movement disrupted a quiet weekend, potentially leading to a new “gap” forming on CME Group’s Bitcoin futures market. As reported by Cointelegraph, price tends to quickly “fill” those gaps once the new macro trading week starts.
“In the last six months, we have filled every CME gap,” trader Killa remarked in commentary on X.
In a separate post, Killa indicated that Mondays usually set the tone for the rest of the week in terms of price action.
“Mondays are typically when pivotal highs and lows take shape, influenced by weekend price trends,” he elaborated.
“If the weekend sees no upward movement, it raises the likelihood of a pivot low on Monday. Conversely, a weekend surge increases the chances of Monday hitting a pivot high.”
FOMC Speculations Center on Fed Rate Cut
Market players were broadly focused on the week’s key macroeconomic issue: the US Federal Reserve’s forthcoming interest-rate decision.
Related: Bitcoin profit metric eyes 2-year lows in ‘complete reset:’ BTC analysis
Expectations remained for a 0.25% cut as the result of Wednesday’s Federal Open Market Committee (FOMC) meeting, confirmed by data from CME Group’s FedWatch Tool.
“The rate announcement is undoubtedly the top event this week – liquidity, risk appetite, and positioning depend on it. Additionally, there’s a delayed JOLTS report worth monitoring,” private investment manager Peter Tarr noted over the weekend.
“Most anticipate a 25 bps cut.”
Historically, Bitcoin tends to experience downward pressure leading up to FOMC decisions, causing notable volatility as the market reacts to Fed officials’ communication regarding potential policy shifts.
Crypto trader, analyst, and entrepreneur Michaël van de Poppe suggested that FOMC uncertainties could lead to a decline to $87,000.
“After that, a quick bounce back would confirm the uptrend for Bitcoin, getting it ready to surpass $92K and potentially reach $100K in the next 1-2 weeks as the FED reduces QT, lowers rates, and expands the money supply to boost the business cycle,” he shared with his followers on X.
Van de Poppe identified $86,000 as the crucial level for bulls.
This article does not serve as investment advice or recommendations. All investment and trading activities carry risk, and readers should conduct their own research before making any decisions.
This article does not serve as investment advice or recommendations. All investment and trading activities carry risk, and readers should conduct their own research before making any decisions. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may include forward-looking statements that are subject to risks and uncertainties. Cointelegraph is not liable for any loss or damage arising from reliance on this information.
