Bitcoin is at present hovering at a crucial technical degree that must be defended to stop main losses, in keeping with crypto analyst “Daan Crypto Trades.”
He was referring to the 0.382 Fibonacci retracement zone, which serves as a key space of help and resistance throughout market cycles.
“I feel this can be a key space for the bulls to defend,” he mentioned, observing {that a} break beneath it might end in a Bitcoin (BTC) fall to April lows round $76,000.
“It’s additionally just about the final main help earlier than testing the April lows once more, which might break this excessive timeframe market construction.”
Late on Sunday, Bitcoin was hit with one other quick leverage flush, with leveraged positions being liquidated on each side. The asset fell beneath $88,000 briefly earlier than rapidly bouncing again above $91,500.
“That is one other instance of manipulation on the low-liquidity weekend to wipe out each leveraged longs and shorts,” commented “Bull Idea.”
All eyes are on the Fed assembly this week
The Federal Open Market Committee’s monetary-policy assembly on Tuesday and Wednesday will conclude with a call on charges, with a 0.25% lower extensively anticipated.
Crypto markets have misplaced momentum because the October lower, as Fed Chair Jerome Powell “signaled a non-linear, data-dependent easing path reasonably than a clear-cutting cycle,” 10x Analysis head Markus Thielen mentioned in a be aware shared with Cointelegraph.
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He added that the market now expects a 25-basis-point lower on Dec. 10, adopted by a cautious tone, “which might mirror October’s hawkish execution and maintain gentle stress into year-end.”
“With volumes already depressed and ETF flows destructive, upside participation stays skinny whereas the $70,000–$100,000 BTC vary holds and implied volatility continues to compress, leaving draw back threat extra pronounced than upside.”
Fed outlook assertion might be key
Apollo Capital’s Henrik Andersson echoed the sentiment, telling Cointelegraph {that a} Fed price lower this week is already priced in, however the important thing for the market path would be the outlook assertion. He remained cautiously optimistic for subsequent 12 months.
“Nevertheless, with the Fed chairman being changed in Could subsequent 12 months, we’ll seemingly get extra rate of interest cuts in 2026, which ought to be supportive for threat property, together with crypto.”
Director of LVRG Analysis, Nick Ruck, agreed, telling Cointelegraph that, along with the Fed assembly, upcoming jobs and inflation information releases “might unlock renewed liquidity inflows and propel a broader market rebound in the event that they align with expectations for continued financial easing.”
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