Bitcoin is currently positioned at a crucial technical level that requires defense to avert significant losses, according to crypto analyst “Daan Crypto Trades.”
He referred to the 0.382 Fibonacci retracement zone, a pivotal area of support and resistance during market cycles.
“I believe this is a vital level for the bulls to uphold,” he stated, noting that a drop below this level could lead to a Bitcoin (BTC) decline to April lows around $76,000.
“It’s essentially the last major support before retesting the April lows, which would disrupt this high time frame market structure.”
Late on Sunday, Bitcoin experienced another short leverage flush, with leveraged positions being liquidated on both sides. The asset briefly dipped below $88,000 before swiftly recovering above $91,500.
“This is yet another instance of manipulation during a low-liquidity weekend aiming to eliminate both leveraged longs and shorts,” remarked “Bull Theory.”
All eyes are on the Fed meeting this week
The Federal Open Market Committee’s monetary-policy meeting on Tuesday and Wednesday will conclude with an anticipated decision on rates, with a 0.25% cut widely expected.
Crypto markets have lost momentum since the October cut, as Fed Chair Jerome Powell “indicated a non-linear, data-driven easing approach instead of a definitive cutting cycle,” said 10x Research head Markus Thielen in a note shared with Cointelegraph.
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He added that the market is now anticipating a 25-basis-point cut on Dec. 10, followed by a cautious stance, “which would reflect October’s hawkish execution and maintain mild pressure into year-end.”
“With volumes already reduced and ETF flows negative, upside participation remains limited while the $70,000–$100,000 BTC range prevails and implied volatility continues to compress, exacerbating downside risks.”
Fed outlook statement will be crucial
Apollo Capital’s Henrik Andersson shared this sentiment with Cointelegraph, stating that a Fed rate cut this week was already factored in, but the outlook statement will be key for market direction. He maintained a cautiously optimistic outlook for next year.
“Nonetheless, with the Fed chairman set to be replaced in May next year, we can expect more interest rate cuts in 2026, which should be supportive of risk assets, including crypto.”
Nick Ruck, the director of LVRG Research, concurred, telling Cointelegraph that in addition to the Fed meeting, forthcoming jobs and inflation data releases “could unlock renewed liquidity inflows and drive a broader market rebound if they align with expectations for ongoing monetary easing.”
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