Bitcoin (BTC) dipped below $88,000 as the weekly close approached, with traders noting a downturn ahead of a significant U.S. macroeconomic event.
Key points:
Bitcoin experienced sudden volatility as it neared the weekly close, dropping close to $87,000.
Traders anticipate weakened BTC price movements leading up to the Fed’s interest rate announcement.
Analysts indicate that bulls must maintain the $86,000 level.
BTC price fluctuates as the weekly candle closes
According to data from Cointelegraph Markets Pro and TradingView, BTC price volatility has returned, with BTC/USD losing $2,000 over two hourly candles.
This shift marked the end of a quiet weekend and raised the possibility of a new “gap” forming in CME Group’s Bitcoin futures markets. As Cointelegraph noted, price usually tends to quickly “fill” these gaps at the start of a new trading week.
“In 6 months, we have filled every single CME gap,” trader Killa remarked in a commentary on X.
In a separate post, Killa mentioned that Mondays usually set the tone for price movement for the week ahead.
“Mondays are typically when pivot highs and lows form, influenced by weekend price action,” he clarified.
“If the weekend doesn’t surge, it raises the chance of a pivot low forming on Monday. Conversely, a weekend surge increases the likelihood of a pivot high on Monday.”
FOMC speculation focuses on Fed rate cuts
Market participants were significantly focused on this week’s pivotal macroeconomic event: the U.S. Federal Reserve’s interest rate decision.
Related: Bitcoin profit metric approaches 2-year lows in ‘complete reset:’ BTC analysis
Expectations continued for a 0.25% cut from Wednesday’s Federal Open Market Committee (FOMC) meeting, as reported by CME Group’s FedWatch Tool.
“The rate announcement is the top event of the week—liquidity, risk appetite, and positioning depend on it. A delayed JOLTS report is also worth watching,” private investment manager Peter Tarr noted over the weekend.
“Most anticipate a 25 bps cut.”
Bitcoin often experiences downward pressure in the lead-up to FOMC announcements, which can trigger substantial volatility as markets interpret Fed officials’ comments for hints about future policy directions.
Crypto trader, analyst, and entrepreneur Michaël van de Poppe suggested that FOMC-induced nerves could lead to a retreat to $87,000.
“After that, we expect a swift bounce back, confirming the uptrend for Bitcoin, paving the way to break $92K and a subsequent rally towards $100K within 1-2 weeks as the FED reduces QT, implements rate cuts, and increases the money supply to stimulate the business cycle,” he informed his X followers.
Van de Poppe set the $86,000 mark as the critical 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.
