BTC Price Compression Ends With White House Crypto Report

Important points 

• Bitcoin’s price compression, and Bollinger Bands are indicators that the range is about to expand. 

• Early price declines this week are likely due to traders reducing risk in anticipation of the FOMC on Wednesday and of a White House report about its cryptocurrency policy and Bitcoin Strategic Reserve.

BitcoinBTCOn Tuesday, remained in the range of $117,000-$120,000 and is expected to close at or below $118,000. BTC has been predicted to drop below $118,000. retest underlying support The price of Bitcoin is expected to be between $114,000 and $110,000. While technical support for such an increase exists, the FOMC minutes from Wednesday and a much-anticipated White House report regarding US crypto policies and a strategy Bitcoin reserve, as well as a long-awaited White House document on US crypto policies, could help reverse this downward trend.

The report is expected to reveal exactly how much Bitcoin the US government currently owns. And traders hope that Trump will continue his efforts toward creating an official Bitcoin strategic reserve. 

The Fed will also be posting its comments on Wednesday. Also, Meta Platforms and Ford are releasing their quarterly results, Robinhood is announcing the earnings of Microsoft, Meta Platforms and Ford and other US companies like Microsoft, Robinhood or Ford. There’s also US data such as Nonfarm payroll, Purchasing Managers Index (PMI), Gross Domestic Product, Consumer Sentiment, ISM Manufacturing and Services report, GDP and consumer sentiment.

Jerome Powell, the Federal Reserve chair is scheduled to make a speech following the Fed’s interest rate decision. CME Group’s FedWatch indicator shows Fed Funds futures price in 98% certainty that rates will remain unchanged between 4.25% and 4.5%. Powell seems to be committed to sticking to his guns despite President Trump’s increasing pressure to cut interest rates immediately. The Fed will then have the choice to either raise or lower rates depending on the economic data. 

Crypto traders have reduced their risk today, as they did in the previous days of trading before the FOMC. Most large-cap tokens were sold. TRDR data shows that Bitcoin’s open interest has fallen to $49.58 Billion, down from $50.58 Billion at Wall Street opening. The selling was accelerated by long liquidations on the futures markets. Data from Coinglass show that $173.8 millions in calls for long positions were made in the last 12 hours.  

Related: Bitcoin bulls aim to chase liquidity at $122K, but Q3 seasonality could stall breakouts

Good news will trigger an outbreak? 

Bitcoin’s price volatility has dropped by nearly 45% in the last three weeks. The daily range of its high to low has shrunk to just $2,300, down from $4,200 a month ago. The price compression is typical of periods where there are consolidations, but it tends to end with a strong direction. In this case, FOMC Minutes that match the expectations of the market and possibly bullish news in the White House Crypto Report could provide the catalyst.

Bollinger Bands have also reached a point of closure, further enhancing Bitcoin’s price compression.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.