The price of Bitcoin was rising into this week’s important Federal Reserve rate decision.
BTCUSD – Daily Chart
A pivotal moment for BTC is shown in the chart with the price testing the important level at $115,815.
Bitcoin is undecided at the current levels with liquidity on both sides of the current resistance level, especially on the downside.
“There’s a huge cluster of long liquidations below the current price, specifically around the 114724.3 level. That’s a lot of trapped longs,” according to TheKingfisher on X.
“This chart doesn’t predict the future, but it tells you where the pain is. And where the pain is, price movements often follow,” they added, noting high levels of leverage.
It is interesting to note that the trapped longs are in place ahead of the Fed’s upcoming decision. The market is expecting a rate cut, with President Trump asking for a big reduction. But if the Fed simply cuts by 25 basis points and fails to project any big reduction into year-end, some profit-taking may ensue.
Bitcoin is also failing to track the strength of gold, which has just hit another record high above $3,700. Are markets simply getting ahead of themselves on the anti-dollar, Fed reduction expectation?
The rest of the week could see big volatility if the rate meeting doesn’t provide the bearish theme that investors are expecting. Following the vote, investors are looking at the news that the Senate has confirmed White House economic adviser Stephen Miran to the board of governors. Miran has made pro-crypto comments in the past and could add some positive sentiment.
