Bitcoin (CRYPTO: BTC) is currently trading around $84,400 as of Monday morning, with key macroeconomic events this week expected to influence short-term price action.

Market Update:

On Sunday, crypto trader CrypNuevo highlighted that Bitcoin’s one-week 50-day exponential moving average has acted as a strong support level, leading to a rebound. However, if this support fails, the bullish structure could be compromised—similar to what happened in Q1 2022.

Impact of the FOMC Meeting:

The Federal Open Market Committee (FOMC) meeting on Wednesday is likely to trigger significant market volatility, particularly due to the release of the dot plot, which provides insights into future interest rate expectations.

Liquidation data indicates that most liquidations are skewed to the upside, with a key liquidity zone between $85,400 and $87,100. Unless Bitcoin’s short-term uptrend is disrupted, a move toward this range is probable. A brief dip below the trendline to trigger stop-losses is also a possibility later in the week.

Market Trends:

• Liquidations: Over the past 24 hours, Bitcoin liquidations totaled $82.7 million, with $43.6 million in long liquidations, according to Coinglass data.
• Derivatives Surge: Bitcoin derivatives trading volume soared by 85.4% in a single day, while options trading volume saw an impressive 190.5% jump.

What’s Next?

Crypto analyst AlphaBTC anticipates heightened volatility due to the FOMC meeting. Bitcoin is currently eyeing liquidity above the past two weekend highs, the CME gap, and the mid-range. Its ability to maintain mid-range levels post-FOMC will depend on market data.

Meanwhile, trader Grey BTC noted that while no rate cuts are expected, traders should prepare for potential price surges across both Bitcoin and altcoins following the meeting.

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