Bitcoin Remains Stable at $84,000 Ahead of Federal Reserve Meeting
Bitcoin is trading around $84,400 with expectations of increased volatility ahead of the FOMC meeting. The liquidity zone is identified between $85,400 and $87,100. Recent liquidation data indicates significant market positioning, with a sizeable surge in trading volumes.
Bitcoin is currently trading at approximately $84,400, with notable macroeconomic developments on the horizon expected to influence short-term price changes. On Sunday, crypto trader CrypNuevo highlighted that Bitcoin’s one-week 50-day exponential moving average has provided support, although a breach of this level could threaten its bullish trajectory, reminiscent of trends observed in Q1 2022.
The upcoming Federal Open Market Committee (FOMC) meeting on Wednesday is anticipated to introduce significant market volatility, particularly due to the release of the dot plot that will detail future interest rate projections. Analysis indicates that most liquidations are skewed towards the upside, with a key liquidity zone identified between $85,400 and $87,100, which may be targeted unless the current short-term upward trend falters.
Coinglass reported that Bitcoin liquidations reached $82.7 million in the last 24 hours, with long liquidations comprising $43.6 million. Furthermore, the derivatives trading volume for Bitcoin increased by 85.4% in one day, alongside a staggering 190.5% rise in options trading volumes.
Crypto enthusiast AlphaBTC noted that the FOMC meeting is likely to heighten volatility, with Bitcoin focusing on liquidity above the significant weekend highs, the CME gap, and the mid-range. Trader Grey BTC observed that while no rate cuts are anticipated, market participants should prepare for increased volatility, which may lead to price surges for Bitcoin and altcoins following the FOMC meeting.
In summary, Bitcoin’s current price stability at $84,400 is challenged by an anticipated increase in volatility due to the forthcoming FOMC meeting. With critical support levels to monitor and a pronounced focus on liquidity zones, traders are advised to remain alert. The potential for significant price fluctuations raises the need for prudent trading strategies as markets react to forthcoming economic indicators.
Original Source: www.benzinga.com
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