Bitcoin is currently at a crucial technical juncture that must be maintained to avoid significant losses, as noted by crypto analyst Daan Crypto Trades.
He was highlighting the 0.382 Fibonacci retracement zone, a vital support and resistance level during market cycles.
“This is a pivotal area for the bulls to protect,” he stated, pointing out that a drop below it could lead to Bitcoin (BTC) plummeting to the April lows around $76,000.
“It’s the last significant support before revisiting the April lows, which would disrupt this high time frame market structure.”
On Sunday night, Bitcoin faced another round of short leverage liquidations, with leveraged positions being wiped out on both ends. The asset dipped below $88,000 before quickly rebounding to over $91,500.
“This exemplifies manipulation during the low-liquidity weekend aimed at erasing both leveraged longs and shorts,” commented “Bull Theory.”
All eyes are on the Fed meeting this week
The Federal Open Market Committee will hold its monetary-policy meeting on Tuesday and Wednesday, concluding with a rate decision, where a 0.25% cut is widely anticipated.
Crypto markets have seen diminished momentum since the October cut, as Fed Chair Jerome Powell “indicated a non-linear, data-driven easing approach instead of a definitive cutting cycle,” stated Markus Thielen, head of 10x Research, in a note shared with Cointelegraph.
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He noted that the market now anticipates a 25-basis-point cut on Dec. 10, paired with a cautious stance, “which would reflect October’s hawkish execution and maintain slight pressure as we approach year-end.”
“With volumes already low and ETF flows in the red, upward participation remains limited while the $70,000–$100,000 BTC range is maintained, and implied volatility continues to compress, highlighting a more significant downside risk compared to upside.”
The Fed outlook statement will be crucial
Henrik Andersson from Apollo Capital echoed this sentiment, telling Cointelegraph that the Fed rate cut this week is already priced in, but the outlook statement will be essential for market direction. He remains cautiously optimistic for the upcoming year.
“However, with the Fed chair set to change in May next year, we may see additional rate cuts in 2026, which should favor risk assets, including crypto.”
Nick Ruck, director of LVRG Research, concurred, stating that alongside the Fed meeting, forthcoming jobs and inflation data releases “could trigger renewed liquidity inflows and motivate a broader market recovery if they align with expectations for continued monetary easing.”
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