Bitcoin Holds Key Support As Fed Rate Decision Looms

According to Daan Crypto trades, Bitcoin has reached a crucial technical level and needs to be protected to avoid major losses.

He referred to the Fibonacci Retracement Zone of 0.382, which acts as an important area of resistance and support during cycles.  

“I think this is a key area for the bulls to defend,” He saidBitcoin (BTC( ) falls to lows of around $76,000 in April. 

“It’s also pretty much the last major support before testing the April lows again, which would break this high time frame market structure.”

Bitcoin experienced another short-leverage flush late on Sunday. leveraged positions Liquidation is taking place on both sides. The asset briefly dropped below $88,000, before quickly rising back up to $91,500.  

“This is another example of manipulation on the low-liquidity weekend to wipe out both leveraged longs and shorts,” commented “Bull Theory.”

The Fed’s meeting is this week.

Federal Open Market Committee monetary policy meeting will be held on Tuesday and on Wednesday. The decision to cut rates by 0.25% is expected at the end of this two-day session. widely expected. 

Since the Fed chair Jerome Powell cut interest rates in October, crypto markets have declined. “signaled a non-linear, data-dependent easing path rather than a clear-cutting cycle,” Markus Thielen, 10x Research’s head of research, said: note Shared with Cointelegraph 

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The market is now expecting a cut of 25 basis points on December 10, then a cautious tone. “which would mirror October’s hawkish execution and sustain mild pressure into year-end.”

“With volumes already depressed and ETF flows negative, upside participation remains thin while the $70,000–$100,000 BTC range holds and implied volatility continues to compress, leaving downside risk more pronounced than upside.” 

Fed Outlook Statement will be Key

Henrik Andersson, of Apollo Capital, echoed this sentiment. He told Cointelegraph, that the Fed’s rate reduction was already priced in. However, the key is to make sure that it doesn’t happen. market direction He remained cautiously optimistic for next year. He was cautiously optimistic about the future. 

“However, with the Fed chairman being replaced in May next year, we will likely get more interest rate cuts in 2026, which should be supportive for risk assets, including crypto.”

Nick Ruck of LVRG Research told Cointelegraph he agreed and said that other than the Fed meeting is upcoming data on jobs, inflation, and wages. “could unlock renewed liquidity inflows and propel a broader market rebound if they align with expectations for continued monetary easing.”

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