Crypto analyst Daan Crypto Trades stated that Bitcoin is currently hovering at a critical technical level that needs to be defended to avoid significant losses.

He referred to the 0.382 Fibonacci retracement zone, which acts as a key support and resistance level in market cycles.

He said, "I believe this is a critical area that the bulls must defend," noting that a drop below this level could lead Bitcoin to retreat to the April low of around $76,000.

On Sunday evening, Bitcoin faced another round of short leverage washout, with leveraged positions being liquidated on both sides. The asset briefly fell below $88,000, then quickly rebounded above $91,500.

The 'Bull Theory' stated, "This is yet another example of manipulation during a low liquidity weekend, washing out both long and short leverage."

It is reported that the Federal Open Market Committee will conclude its monetary policy meeting on Tuesday and Wednesday with an interest rate decision, with the market widely expecting a 0.25% rate cut.

Markus Thielen, head of 10x Research, stated in a report shared with Cointelegraph that since the rate cut in October, momentum in the crypto market has weakened, as Federal Reserve Chairman Powell "signaled a non-linear, data-dependent easing path rather than a clear rate-cutting cycle."

He added that the market currently expects a 25 basis point rate cut on December 10, followed by a cautious tone, "which will replicate the hawkish execution of October and maintain moderate pressure before the end of the year." "With trading volume already down and ETF liquidity negative, opportunities for upward movement remain thin, while the BTC range of $70,000 to $100,000 remains unchanged, with implied volatility continuing to compress, making downside risks more apparent than upside."

Henrik Andersson of Apollo Capital also expressed a similar view, telling Cointelegraph that the Fed's rate cut this week has already been priced in by the market, but the key to market direction will be the outlook statement. He remains cautiously optimistic for next year.

Nick Ruck, head of LVRG Research, agreed with this view, telling Cointelegraph that aside from the Fed meeting, upcoming employment and inflation data releases "could release new liquidity inflows if they align with expectations for continued monetary easing, potentially driving a broader market recovery."

Related: Vitalik Buterin proposes introducing Gas futures on Ethereum (ETH) to hedge against the risks of soaring transaction fees.

Original article: “Analyst says Bitcoin (BTC) bulls must defend key level to avoid dropping to $76,000”

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