Bitcoin preps FOMC reaction as BTC price coils below new $76.5K record
2024.11.07 04:07
Bitcoin (BTC) is consolidating at $75,000 on Nov. 7 as markets gear up for a new United States macro event.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin trader sees “underlying market shift”
BTC price action reached new record highs of $76,480 on Bitstamp before a modest pullback, data from Cointelegraph Markets Pro and TradingView confirms.
As the dust settles on the US Presidential Election, BTC/USD continues to enjoy strong demand.
In his latest analysis on X, popular trader Skew argues that this is a decisive factor in buoying the market — one which was previously absent.
“Strong spot flows today has lifted price towards new ATHs & through multi month supply zone ($73K) & Further signs of major shift taking place in the underlying market,” he wrote.
“The underlying market shift here is a clear from the return of passive demand for BTC – Limit spot bids.”
BTC/USDT 15-minute chart with liquidity data. Source: Skew/X
Skew noted that sell-side liquidity now stands between the spot price and the $80,000 mark.
“These limit spot bids only were moved up & quoted during the breakout move, which tells me market curve has shifted towards demand,” he concluded.
Source: John Kicklighter
Further volatility is expected later in the day as the Federal Reserve meets to decide on changes to benchmark interest rates.
Markets already predict a 0.25% cut will result, but the Federal Open Market Committee (FOMC) gatherings can nonetheless spark crypto and risk-asset volatility in their own right.
This comes chiefly from the statement and press conference given by Chair Jerome Powell which follow the meeting itself, with markets closely watching his language for cues over future policy trajectory.
“I am not bearish at all , although the potential for a short term consolidation is likely,” analyst Andrea Capellini told X followers in part of a post on the topic.
“I could be seeing potentially a move up towards the 77- 77.5k area , but then I am expecting a retracement due to market makers de-risking ahead of FOMC tomorrow.”
Fed target rate probabilities. Source: CME Group
The latest data from CME Group’s FedWatch Tool puts the odds of a 0.25% cut at 97.4% at the time of writing.
BTC price targets include $100,000
BTC price gains, meanwhile, have sparked increasingly bullish prognoses over how much higher Bitcoin could go.
Related: Bitcoin price needs 2 months to return ‘above macro trend’ — Forecast
After breaking out of a consolidation channel lasting nearly eight months, BTC/USD is giving market participants cause to consider ever higher targets.
“I was right about the pump to $74-$75k, but it looks like I was wrong about the pullback scenario. That said, as I shared yesterday, we had a trigger for longs with the break above $69k, but there was no trigger for a pullback since $BTC held above $72,700 support today,” popular trader Justin Bennett wrote in an X update.
“As a side note, I’m seeing Binance perp whales continue to build longs vs. retail. So as long as that’s the case and Bitcoin is above $72,700, send it! FOMC tomorrow. If risk assets can survive that, this could be the $100k move everyone has waited for. Let’s see.”
BTC/USDT 1-day chart. Source: Justin Bennett/X
Like Skew, Bennett highlighted the area around $73,000 as the key line in the sand for bulls to hold going forward.
Continuing, veteran trader Peter Brandt described BTC/USD as being in the “sweet spot” of its current bull cycle.
In his words, this “should top in the $130k to $150K range next Aug/Sep.”
BTC/USD 1-week chart. Source: Peter Brandt/X
Earlier, Cointelegraph reported on BTC price support levels being eyed in the event of a market U-turn.
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.
