Bitcoin (BTC) dipped below $88,000 as Sunday’s weekly close approached, with traders noting signs of weakness ahead of a significant US macro event.
Key points:
Bitcoin experienced abrupt volatility as the weekly close neared, falling close to $87,000.
Traders anticipate weaker BTC price movements leading up to the Fed’s interest-rate decision.
Analysts emphasize the need for bulls to maintain support at $86,000.
BTC price fluctuates as weekly candle concludes
Data from Cointelegraph Markets Pro and TradingView revealed an influx of BTC price volatility, with BTC/USD decreasing by $2,000 over two hourly candles.
This shift marked the end of a quiet weekend, setting the stage for a potential “gap” to form in CME Group’s Bitcoin futures markets. Cointelegraph noted that prices typically “fill” such gaps quickly as the new macro trading week commences.
“In the past 6 months, we have filled every CME gap,” trader Killa mentioned in commentary on X.
In a separate post, Killa noted that Mondays typically lay the groundwork for price action throughout the week.
“Mondays are often when pivotal highs and lows materialize, influenced by weekend price activity,” he elaborated.
“If the weekend doesn’t see a surge, it raises the likelihood of a pivot low forming on Monday. Conversely, a weekend surge increases the chances of a pivot high on Monday.”
FOMC speculation centers on Fed rate cut
Market participants were predominantly focused on the significant macroeconomic event of the week: the US Federal Reserve’s interest-rate decision.
Related: Bitcoin profit metric indicates 2-year lows in ‘complete reset:’ BTC analysis
Market expectations continued to point towards a 0.25% cut from Wednesday’s Federal Open Market Committee (FOMC) meeting, as confirmed by data from CME Group’s FedWatch Tool.
“The rate decision is clearly the top event of the week – liquidity, risk appetite, and positioning all depend on it. We also have a delayed JOLTS report that is worth monitoring,” private investment manager Peter Tarr noted during the weekend.
“Most predict a 25 bps cut.”
Bitcoin frequently faces downward pressure ahead of FOMC announcements, potentially causing significant volatility as markets interpret Fed officials’ commentary for indications of future policy shifts.
Commenting on this, crypto trader, analyst, and entrepreneur Michaël van de Poppe indicated that FOMC hesitancy could prompt a pullback to $87,000.
“Afterwards, a swift bounce back could confirm the uptrend for Bitcoin, leading it towards breaking $92K, and thus a sprint towards $100K in the next 1-2 weeks as the FED reduces QT, implements rate cuts, and boosts the money supply to enhance the business cycle,” he shared with his followers on X.
Van de Poppe marked $86,000 as the pivotal level for bulls.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. 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 contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
