Bitcoin Remains Steady at $90,000 — Market Anticipates FOMC Meeting to Spark Movement

Bitcoin

As Bitcoin hovers around the crucial $90,000 mark, the cryptocurrency market is entering a phase of significant compression. Recently, there has been a slowdown in ETF inflows, which has diminished the price momentum needed to overcome resistance levels. Traders are looking to the upcoming FOMC meeting, which is expected to serve as a catalyst to break the current consolidation phase and determine Bitcoin's next significant movement.

BTC Compression Phase: Adjusting to Limited Trading Opportunities

In a recent update, analyst Lennaert Snyder noted that Bitcoin is tightening within a compression phase, trading within an increasingly narrow range. This behavior typically indicates that a larger price movement is on the horizon. Snyder mentioned that the short and long scalp trades he previously analyzed performed well, but he cautioned that as compression heightens, the reward-to-risk ratio tends to decrease. Although these trades generated profits, they still represent “C-setups,” indicating that they lack the clear momentum usually observed at the boundaries of ranges. Snyder stressed that the most favorable trading opportunities arise at these range edges.

Currently, Snyder is focusing on the critical resistance level around $94,000. A breakout above this point could present long trade opportunities, while a failure to do so might trigger short positions. If the price falls to the lows and returns to the support area at $87,400, it could signal potential long entries following a reversal.

Bitcoin
Source: Chart from Lennaert Snyder on X

Despite this analysis, Snyder expressed caution. If Bitcoin fails to demonstrate strength during the current phase, he is hesitant to initiate new long positions. A deeper retest of the $83,200 region may become the next area of interest, although any approach to that level could come with a liquidity sweep. Additionally, Snyder mentioned that he continues to hold short positions as a hedge, advising scalpers to consider the increased risk inherent in this trading environment. He concluded by emphasizing the significance of the upcoming FOMC meeting, suggesting that the market is likely to remain muted until then.

FOMC Meeting: The Key to Bitcoin’s Next Movement

Analyst Ted has provided insights indicating that Bitcoin is in a consolidation phase, trading around the $90,000 level. This confined trading behavior signifies that while selling pressure isn't strong, buyers are also finding it challenging to drive the price upwards effectively.

Ted attributed the stagnation in the market and its failure to breach significant resistance levels to a slowdown in institutional investments. He pointed out that recent ETF inflows have diminished, removing a critical source of upward buying pressure that typically facilitates breakouts.

Moreover, Ted highlighted the upcoming FOMC meeting as a pivotal macroeconomic event. The outcome of this meeting, scheduled for tomorrow, will play a crucial role in determining Bitcoin’s next significant directional move.

Bitcoin
BTC trading at $90,363 on the 1D chart | Source: BTCUSDT on Tradingview.com

Key Takeaways:

Bitcoin is currently trading around $90,000 amidst a period of market compression.
The FOMC meeting is expected to influence Bitcoin's next major directional move.
ETF inflows have slowed, impacting overall market momentum.
Traders are observing key resistance levels, particularly around $94,000 and support around $87,400 and $83,200.
Analysts emphasize caution in current trading conditions due to underlying risks.