Bitcoin is hovering at a crucial technical level that analysts say must hold to avoid significant losses. Crypto analyst Daan Crypto Trades pointed to the 0.382 Fibonacci retracement zone as a key area of support and resistance during market cycles.
“I think this is a key area for the bulls to defend,” he noted, adding that a break below this level could push Bitcoin down to its April lows near $76,000.
“It’s also pretty much the last major support before testing the April lows again, which would break this high time frame market structure.”
Late Sunday, Bitcoin experienced another short-leverage flush, with leveraged positions liquidated on both sides. The cryptocurrency briefly dipped below $88,000 before rebounding above $91,500.
“This is another example of manipulation on the low-liquidity weekend to wipe out both leveraged longs and shorts,” noted crypto analyst Bull Theory.
All Eyes on This Week’s Fed Meeting
The Federal Open Market Committee (FOMC) will conclude its monetary policy meeting on Tuesday and Wednesday with a decision on interest rates, with a 0.25% cut widely anticipated.
Since the October rate reduction, crypto markets have lost momentum. According to Markus Thielen, head of 10x Research, Fed Chair Jerome Powell signaled a “non-linear, data-dependent easing path rather than a clear-cut cutting cycle.”
Thielen added that the market is now pricing in a 25-basis-point cut on Dec. 10, followed by a cautious tone, which he said would “mirror October’s hawkish execution and maintain mild pressure on markets 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 Likely to Drive Market Direction
Henrik Andersson of Apollo Capital told Cointelegraph that while a Fed rate cut this week is largely already priced in, the real market-moving factor will be the outlook statement. He expressed cautious optimism for 2026.
“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, the director of LVRG Research, agreed, telling Cointelegraph that in addition to the Fed meeting, upcoming jobs and inflation data releases “could unlock renewed liquidity inflows and propel a broader market rebound if they align with expectations for continued monetary easing.”
