Bitcoin Price Dips Below $88K Amid FOMC Concerns

Bitcoin fell below $88,000 as Sunday’s trading week concluded, with traders anticipating market weakness in light of an upcoming significant U.S. economic event.

Key Takeaways:

Bitcoin experienced rapid price fluctuations, dropping to around $87,000 at the weekly close.
Trading sentiment suggests continued instability in BTC price ahead of the Federal Reserve's interest rate decision.
Analysts indicate that Bitcoin must maintain a support level at $86,000 to sustain bullish momentum.

Bitcoin price dips below 88K as analysis blames FOMC nerves

Bitcoin Price Wobbles as Weekly Candle Completes

According to data from Cointelegraph Markets Pro and TradingView, Bitcoin's volatility returned, causing the price to plummet by $2,000 within just two hourly candles.
Bitcoin Price, Markets, Market Analysis
BTC/USD one-hour chart. Source: Cointelegraph/TradingView

This downturn ended a relatively calm weekend, setting the stage for a potential new "gap" in the Bitcoin futures markets offered by CME Group. As previously noted by Cointelegraph, prices typically "fill" such gaps quickly when a new macro trading week begins.

“In the past six months, every CME gap has been filled,” remarked trader Killa in comments made on X.
BTC/USD chart with CME futures gap target. Source: Killa/X

Killa further mentioned that price action on Mondays often sets the tone for the week ahead. "Mondays usually establish pivot highs and lows, with weekend prices playing a crucial role," he explained.
BTC/USD chart with Mondays highlighted. Source: Killa/X

Focus on Federal Reserve's Decisions

Meanwhile, market participants are closely watching a pivotal macroeconomic issue: the U.S. Federal Reserve's decisions regarding interest rates.
Related:__Bitcoin profit metrics indicate potential lows as analysts call for a reset.

Data from CME Group’s FedWatch Tool shows markets are anticipating a 0.25% interest rate cut during the upcoming meeting of the Federal Open Market Committee (FOMC).

“The rate call is undoubtedly the most significant event of the week—liquidity, risk appetite, and positioning are all dependent on it. Additionally, there’s a delayed JOLTS report that should be monitored,” stated private investment manager Peter Tarr over the weekend.
Fed target rate probabilities for Dec. 10 FOMC meeting (screenshot). Source: CME Group

Bitcoin's price has often been pressured downward before FOMC announcements, leading to significant volatility as traders interpret Fed officials’ communications for signs of future policy adjustments.

Crypto trader and analyst Michaël van de Poppe commented that uncertainties surrounding the FOMC could lead Bitcoin to retreat to $87,000 temporarily. He predicts a subsequent bounce back, affirming an upward trend that could see Bitcoin breaking above $92K, driving toward a possible $100K in the next week or two as the Fed scales back quantitative tightening (QT) and lowers rates to stimulate the economy. Van de Poppe emphasized that $86,000 is a crucial support line for bullish traders.
BTC/USDT four-hour chart with volume and RSI data. Source: Michaël van de Poppe/X