"Bitcoin volatility widens…risk of retesting $76,000 remains despite rebound"

Minseung Kang

Summary

"Bitcoin"'s volatility is expanding, and there is a risk of adjustment to $76,000 if key price levels are breached.
The market said that liquidations of leveraged positions and ETF outflows are accentuating short-term downside risk.
It conveyed that the upcoming U.S. FOMC meeting and the direction of rate-cut policy are expected to have a significant impact on cryptoasset market momentum.

Bitcoin (BTC) has been repeating short-term sharp drops and rebounds while searching for direction at key price levels. Market analysis suggests that if the decline continues, an adjustment down to the $76,000 level, the low in April, is possible.

On the 8th, cryptoasset (cryptocurrency) specialized media Cointelegraph reported that crypto analyst Daan Crypto Trades said, "Bitcoin is currently showing a flow trying to maintain an important price level, and if this level is broken to the downside, there is a risk of being pushed down to around $76,000." He explained that leveraged position liquidations occurred in both directions during the recent weekend session, expanding price volatility.

A Bull Theory analyst evaluated, "Recently, movements to clear leveraged positions during low-liquidity periods have been repeated. This caused abrupt volatility."

Market attention is turning to this week's scheduled U.S. Federal Open Market Committee (FOMC) meeting. Marcus Thielen, head of 10x Research, said, "Since the rate cut in October, the U.S. central bank (Fed) has not presented a clear easing path, weakening market momentum."

He analyzed, "If the 0.25% percentage point cut expected on the 10th is accompanied by a cautious tone, pressure could continue through the end of the year." He added, "With declining trading volume and continued outflows from exchange-traded funds (ETFs), the demand participating in breaking Bitcoin's upside has thinned," and "short-term downside risk is relatively highlighted."

Henrik Andersen, Chief Investment Officer (CIO) of Apollo Capital, said that this rate cut has already been priced in, but that future direction depends on the policy statement. He forecast, "After the Fed chair replacement in May next year, there is a high possibility of additional rate cuts next year, which could create a favorable environment for risky assets, including cryptoassets."

Nick Luck, LVRG research director, analyzed, "If employment and inflation indicators align with easing expectations, market liquidity could expand again."

BTC