Bitcoin eyes $95K retest as traders brace for Fed rate cut volatility
By: bitcoin ethereum news|2025/05/05 04:45:01
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Key points: Bitcoin attacks liquidity clustered close to spot price into the weekly close. Market commentators eye significant BTC price levels below $95,000. The Fed’s upcoming interest rate decision is the key macro event to watch next week. Bitcoin (BTC) fell toward $95,000 into the May 4 weekly close as traders braced for more macro-induced downside. BTC price liquidations mount after 10-week highs Data from Cointelegraph Markets Pro and TradingView showed BTC/USD retreating from multimonth highs toward the May open. Hitting liquidity clustered around spot price, Bitcoin created a recipe for volatility as market participants discussed key levels. “Dense longs cluster 95.7k-96k, heavy shorts 96.5k-97k right around current price (~96.2k),” popular trader TheKingfisher wrote in part of ongoing analysis on X. “These are price magnets. Expect chop/volatility as they get tested.” The latest data from monitoring resource CoinGlass showed price colliding with buy liquidity, with the majority of asks clustered around $97,200. With the past week seeing multiple liquidity “grabs,” some saw the potential for that behavior to continue as the key $100,000 mark edged closer. $BTC Gap and tap before liquidity grab at $100k is what I’m looking for here https://t.co/akVEzc3Aaj pic.twitter.com/igCptK8VIp — NiFτy (@niftyinvest) May 4, 2025 “Positions from $94K–$97K flushed at weekend,” popular trader BitBull summarized. Assessing the potential for a fresh dip, crypto trader, analyst and entrepreneur Michaël van de Poppe said that BTC/USD had plenty of room to retest support while still maintaining its recent comeback. “What I’d prefer to see on $BTC is that we’re holding above $91.5-92K,” he told X followers on the day. “That validates for me the continuation towards a new ATH as the previous range support becomes support again.” Bitcoin downside expected into Fed rate cut decision Expectations of volatility were high heading into the new week, with the US Federal Reserve due to decide on interest rates. Related: Bitcoin hodler unrealized profits near 350% as $100K risks sell-off As Cointelegraph reported, the stakes for market sentiment are high before the event. Recession warnings and pressure from President Donald Trump combine with hawkish signals from Fed officials. NOTE: In less than a month, Trump has pressured Powell and the Fed to lower interest rates three times already... pic.twitter.com/qaQc7zJnuw — André Dragosch, PhD (@Andre_Dragosch) May 2, 2025 The latest data from CME Group’s FedWatch Tool nonetheless maintains minimal odds of a rate cut on May 7. “Remind yourself that Crypto & Altcoins have the temper to be correcting in the week prior to the FED meeting,” Van de Poppe commented. “I suspect that we’d be having the end of that correction around Tuesday and go up from there.” This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. Source: https://cointelegraph.com/news/bitcoin-95k-retest-traders-brace-for-fed-rate-cut-volatility?utm_source=rss_feed&utm_medium=feed%3F_%3D959&utm_campaign=rss_partner_inbound
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