Bitcoin’s Critical Support Zone: A Crucial Level to Defend
Bitcoin is currently hovering at a critical technical level that needs to be defended to prevent major losses, according to crypto analyst Daan Crypto Trades. This level, known as the 0.382 Fibonacci retracement zone, serves as a key area of support and resistance during market cycles. As Daan Crypto Trades noted, “I think this is a key area for the bulls to defend,” emphasizing that a break below it could result in a Bitcoin (BTC) fall to April lows around $76,000.
Furthermore, Daan Crypto Trades highlighted that this level is “pretty much the last major support before testing the April lows again, which would break this high time frame market structure.” This sentiment is echoed by other analysts, who are closely watching the market’s movements in anticipation of the Federal Open Market Committee’s monetary-policy meeting on Tuesday and Wednesday. Late on Sunday, Bitcoin was hit with another short leverage flush, with leveraged positions being liquidated on both sides, causing the asset to fall below $88,000 briefly before quickly bouncing back above $91,500.
BTC is trading at a key support/resistance zone. Source: Daan Crypto Trades
Federal Reserve Meeting: A Key Event for Market Direction
The Federal Open Market Committee’s monetary-policy meeting will conclude with a decision on rates, with a 0.25% cut widely expected. According to 10x Research head Markus Thielen, crypto markets have lost momentum since the October cut, as Fed Chair Jerome Powell “signaled a non-linear, data-dependent easing path rather than a clear-cutting cycle.” Thielen noted that the market now expects a 25-basis-point cut on Dec. 10, followed by a cautious tone, “which would mirror October’s hawkish execution and sustain mild pressure into year-end.”
Apollo Capital’s Henrik Andersson echoed this sentiment, telling Cointelegraph that a Fed rate cut this week was already priced in, but the key for market direction will be the outlook statement. Andersson remained cautiously optimistic for next year, noting that “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, highlighting that 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.”
Expert Insights and Market Expectations
As the market awaits the Federal Reserve’s decision, experts are weighing in on the potential implications for Bitcoin and the broader crypto market. With volumes already depressed and ETF flows negative, upside participation remains thin, leaving downside risk more pronounced than upside. However, as Daan Crypto Trades and other analysts have noted, the current support zone is a critical level to defend, and a break below it could have significant consequences for the market.
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