Bitcoin Holds Steady At $84,000 As Wednesday FOMC Meeting Looms

Bitcoin BTC/USD is trading around $84,400 on Monday morning, with macroeconomic events this week anticipated to set the tone for short-term price movement in the weeks to come.

What Happened: Crypto trader CrypNuevo on Sunday noted that Bitcoin's one-week 50-day exponential moving average has held as support, prompting a bounce.

If this level breaks, it could invalidate the bullish structure, similar to Q1 2022

The FOMC meeting on Wednesday is expected to inject high volatility into markets, particularly due to the dot plot release, which outlines future interest rate expectations.

Liquidation data suggests most liquidations are positioned to the upside. The main liquidity zone sits between $85,400 and $87,100—a likely target unless Bitcoin's short-term uptrend breaks.

A move towards this range next week seems likely unless the short-term uptrend breaks. A quick dip below the trendline to trigger stop-losses is possible later in the week.

Coinglass data shows that Bitcoin liquidations in the past 24 hours hit $82.7 million, with $43.6 million in long liquidations.

Bitcoin derivatives trading volume surged 85.4% in a single day, while options volume skyrocketed 190.5%.

Also Read: Arthur Hayes Predicts Bitcoin Surge To $250,000 By Year-End, Says Current Downturn Is Clearing Out Deadwood: ‘Short-Term Pain’

What's Next: Crypto enthusiast AlphaBTC pointed out that with the FOMC meeting this week, volatility will be high.

Bitcoin appears to be targeting liquidity above the last two weekend highs, the CME gap and the mid-range.

Whether it holds the mid-range post-FOMC will depend on how the data unfolds.

Trader Grey BTC noted that no rate cuts are expected, but traders should brace for volatility, as both Bitcoin and altcoins could see a price surge following the meeting.

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