Bitcoin is at present hovering at a crucial technical degree that must be defended to forestall main losses, in response to crypto analyst “Daan Crypto Trades.”
He was referring to the 0.382 Fibonacci retracement zone, which serves as a key space of assist and resistance throughout market cycles.
“I feel it is 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 assist earlier than testing the April lows once more, which might break this excessive time-frame market construction.”
Late on Sunday, Bitcoin was hit with one other quick leverage flush, with leveraged positions being liquidated on either side. The asset fell beneath $88,000 briefly earlier than shortly 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 Concept.”
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% reduce extensively anticipated.
Crypto markets have misplaced momentum because the October reduce, as Fed Chair Jerome Powell “signaled a non-linear, data-dependent easing path moderately than a clear-cutting cycle,” 10x Analysis head Markus Thielen mentioned in a notice shared with Cointelegraph.
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He added that the market now expects a 25-basis-point reduce on Dec. 10, adopted by a cautious tone, “which might mirror October’s hawkish execution and maintain delicate 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 shall be key
Apollo Capital’s Henrik Andersson echoed that sentiment, telling Cointelegraph {that a} Fed price reduce this week was already priced in, however the important thing for market route would be the outlook assertion. He remained cautiously optimistic for subsequent yr.
“Nonetheless, with the Fed chairman being changed in Could subsequent yr, we are going to probably get extra rate of interest cuts in 2026, which ought to be supportive for threat belongings, together with crypto.”
Nick Ruck, the director of LVRG Analysis, agreed, telling Cointelegraph that along with the Fed assembly, upcoming jobs and inflation knowledge 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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