Traders are concerned about the market weakness that may arise from significant macro events in the U.S., as Bitcoin (BTC) fell below $88,000 during the weekly close on Sunday.
Key points:
Bitcoin experienced rapid fluctuations before the weekly close, dropping to nearly $87,000.
Analysts suggest that traders expect Bitcoin's performance to be weak ahead of the Federal Reserve's interest rate decision.
Bulls need to hold above $86,000 to maintain the market trend.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin's price volatility has returned, with Bitcoin dropping $2,000 within two hourly candles.
This wave of trading ended a quiet weekend and opened the door for a potential new "gap" in the CME Group's Bitcoin futures market. As reported by Cointelegraph, prices typically "fill" such gaps quickly once a new macro trading week begins.
Trader Killa commented on X: "We have filled every CME gap in the past six months."
In another post, Killa added that Mondays often set the tone for price movements for the remainder of the week.
He explained: "Mondays usually form key highs and lows, and the weekend's price action is a decisive factor."
Meanwhile, market participants are generally focused on this week's key macroeconomic topic: the Federal Reserve's interest rate decision.
CME Group's FedWatch tool indicates that the market still expects a 0.25% rate cut to be announced at Wednesday's Federal Open Market Committee (FOMC) meeting.
Private investment manager Peter Tarr wrote over the weekend: "The interest rate decision is undoubtedly the most important event of the week—liquidity, risk appetite, and positioning all depend on it. We will also receive the noteworthy lagging JOLTS report."
Bitcoin typically faces downward pressure before the FOMC announcement, which could trigger significant volatility as the market carefully interprets the wording of Federal Reserve officials for clues about future policy changes.
Cryptocurrency trader, analyst, and entrepreneur Michaël van de Poppe commented that the uncertainty surrounding the FOMC could lead Bitcoin to retreat to $87,000.
He stated on X: "After that, it will quickly rebound, confirming Bitcoin's upward trend and preparing to break through $92,000, aiming for $100,000 in the next 1-2 weeks as the Fed is tapering, cutting rates, and expanding the money supply to drive the business cycle."
Van de Poppe views $86,000 as the bulls' defense line.
Related: Reports indicate that South Korea will impose bank-level responsibilities on cryptocurrency exchanges
Original: “Bitcoin Dips Below $88K, Analysis: FOMC Meeting Sparks Market Tension”
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