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Bitcoin retests $95K as traders prepare for Fed rate cuts volatility

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Bitcoin Price Turns Red Below 64K But Long Term Uptrend Intact.webp
Bitcoin Price Turns Red Below 64K But Long Term Uptrend Intact.webp

The following are key points.

  • Bitcoin attack liquidity clustered near spot price in the weekly closing.

  • BTC prices are expected to drop below $95,000, according to market analysts.

  • Watch out for the Fed’s next interest rate decision.

BitcoinBTCAs traders prepared for an even greater macro-induced downturn, the price fell towards $95,000 in the week ending May 4.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

BTC liquidation prices rise after 10-week-highs

The Data of Cointelegraph Markets Pro The following are some examples of how to get started: TradingView BTC/USD retreated from its multi-month highs towards the opening of May.

Bitcoin, which has a lot of liquidity around the spot price created volatility when market participants were discussing important levels.

“Dense longs cluster 95.7k-96k, heavy shorts 96.5k-97k right around current price (~96.2k),” TheKingfisher, a popular trader, wrote in part: ongoing analysis X. 

“These are price magnets. Expect chop/volatility as they get tested.”

BTC liquidation heatmap. Source: CoinGlass

Latest data on monitoring resources CoinGlass Price and liquidity collided, with most of the bids clustered at $97,200.

The past week has seen a number of notable events. multiple liquidity “grabs,” Some saw that this behavior could continue as the $100,000 threshold approached.

“Positions from $94K–$97K flushed at weekend,” Popular trader BitBull summarized.

Assessing tHe potential for a fresh dip, crypto trader, analyst and entrepreneur Michaël van de Poppe said that BTC/USD had plenty of room to retest support while still maintaining its recent comeback.

“What I’d prefer to see on $BTC is that we’re holding above $91.5-92K,” he told X Followers on the Day

“That validates for me the continuation towards a new ATH as the previous range support becomes support again.”

BTC/USDT 1-day chart. Source: Michaël van de Poppe/X

Bitcoin expected to decline in value after Fed Rate Cut Decision

The US Federal Reserve is due to make a decision on interest rates, and this week there are high expectations of volatility.

Related: Bitcoin hodler unrealized profits near 350% as $100K risks sell-off

The following are some of the ways to get in touch with us. Cointelegraph reportedThe stakes are already high for the market’s sentiment. Recession warnings, pressure from Donald Trump and hawkish Fed signals combine.

CME Group: Latest data FedWatch Tool However, the odds are still low that a cut in rates will occur on May 7

Fed’s target rates for its May 7 meeting. Source: CME Group

“Remind yourself that Crypto & Altcoins have the temper to be correcting in the week prior to the FED meeting,” Van de Poppe commented. 

“I suspect that we’d be having the end of that correction around Tuesday and go up from there.”

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.