Key Insights:
- Bitcoin price traded near $91,000 at the time of writing as bulls made effort to sustain a key support level at $90,000.
- Daan Crypto Trades identified the 0.382 Fibonacci retracement level and suggested the need to sustain it or risk a breakdown to April lows of $76,000.
- Bitcoin slipped below $88,000 as traders braced for a major U.S. macro event.
Currently, Bitcoin price has recovered and is now fighting to hold the $90,000 support, a level traders say could decide the next big move.
Analysts warn that if this line gives way, price could slide toward $76,000, wiping out months of structure.
Meanwhile, traders are also watching this week’s macro backdrop. CME’s FedWatch Tool still points to a 0.25% rate cut at Wednesday’s FOMC meeting.
That call alone is enough to stir up volatility in BTC USD and the rest of the crypto market.
$90K Support Holds Key to Bitcoin Price Next Move
Bitcoin price continues hovering near the critical support level of $90,000. A top analyst, Daan Crypto Trades identified the 0.382 Fibonacci retracement level near this zone and suggested the need to sustain the level. Failure to hold above could risk a downward movement to $76,000.
“This is an important zone for the bulls to defend,” he said. He warned that a break below it could push Bitcoin down toward the April lows around $76,000.
“It’s basically the last major support before retesting those lows, which would break the high-timeframe market structure,” he added.
Late Sunday, the market saw renewed volatility. Bitcoin price briefly dipped below $88,000 as leveraged positions were liquidated on both sides, but it quickly bounced back above $91,500.
Analyst Bull Theory said the move showed typical weekend market dynamics. He explained that the price movements look like manipulation in low-liquidity conditions, designed to hit both leveraged longs and shorts.
FOMC Rate Cut Expectations Could Drive Volatility
Markets are watching the FOMC meeting on Wednesday closely, expecting a modest 0.25% rate reduction
Bitcoin price and the broader crypto market has struggled to find momentum since the October rate cut. Markus Thielen, head of 10x Research said in a recent update that Fed Chair Jerome Powell signaled a “non-linear, data-dependent easing path”, rather than a straightforward cutting cycle.
Thielen added that investors now anticipate a 25-basis-point cut on December 10, but with caution. He said this approach could echo October’s hawkish stance and keep mild pressure on markets through year-end.
Private investment manager Peter Tarr described the rate decision as the top event of the week, noting that liquidity, risk appetite, and market positioning all depend on it. He added that the delayed JOLTS report is also worth monitoring.
Most market participants are expecting a 25-basis-point cut, according to CME Group data ahead of the December 10 FOMC meeting.
In the past, Bitcoin price has often come under pressure prior to previous FOMC announcements mainly because market participants usually try interpreting the Fed’s actions for any hints about future rates.
A leading analyst, Michaël van de Poppe suggested the possibility of downswing in the price of BTC USD towards $87,000. However, there is a high chance of the cryptocurrency recovering back above $90,000 once the volatility subsides.
If Bitcoin price succeeds in pulling out a recovery, Van de Popp said the move would confirm an uptrend and open the path for BTC USD price to break above $92,000.
With sustained momentum, the price could rally all the way to $100,000 by Christmas Day.
He noted that the Federal Reserve’s moves to reduce quantitative tightening, cut rates, and expand the money supply are likely to support the market during this period.
He also highlighted $86,000 as a critical support level, describing it as the bulls’ line in the sand.