Defx Insights

Tag: Fomc Impact

  • Bitcoin Price Dips 3% to $84K: Options Traders Eye $100K Target

    Bitcoin Price Dips 3% to $84K: Options Traders Eye $100K Target

    Bitcoin Price Dips 3% to $84K: Options Traders Eye $100K Target

    Bitcoin’s price retreated from its recent FOMC-driven rally, dropping 3% to $84,000 during Asian trading hours on Friday. Despite the short-term pullback, options market data suggests growing confidence in Bitcoin reaching the coveted $100,000 level by mid-2025.

    Market Overview: Post-FOMC Profit Taking

    The broader cryptocurrency market experienced a correction as traders took profits following Thursday’s Federal Reserve-induced rally. Key highlights include:

    • Overall crypto market cap declined 3.2% in 24 hours
    • Bitcoin dropped from $86,000 to under $84,000
    • Ethereum fell below $2,000
    • Solana’s SOL declined 5%

    Options Markets Signal Bullish Sentiment

    Despite the short-term pullback, derivatives markets are showing increasingly bullish positioning. According to Dr. Sean Dawson of derive.xyz:

    • Probability of BTC exceeding $100K by June 30 increased from 20% to 30%
    • ETH maintaining $2,000+ by June has 50% probability
    • 60% of recent ETH options trades were bullish calls
    • 34% of BTC options volume shows traders hedging downside risk

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    Technical Analysis and Support Levels

    FxPro analyst Alex Kuptsikevich identifies key technical levels:

    • Critical support at $80,000
    • 200-day moving average near $2.9 trillion market cap
    • Break above MA could trigger renewed buying interest
    • Risk of bear trap remains present

    Other Notable Market Movements

    While major cryptocurrencies declined, some tokens showed strength:

    • Tron (TRX) gained 2% after launching on Solana
    • TON rose 2% following $400M VC investment news
    • XRP consolidated after Wednesday’s 10% spike
    • BNB maintained 8% weekly gains

    FAQ Section

    What caused Bitcoin’s price drop today?

    The decline was primarily due to profit-taking following Thursday’s FOMC-driven rally, as traders locked in gains from the recent surge above $85,000.

    Will Bitcoin reach $100,000 in 2025?

    Options market data shows increasing confidence, with a 30% probability of Bitcoin exceeding $100,000 by June 30, 2025, according to derivatives platform data.

    What are the key support levels to watch?

    Analysts identify $80,000 as a critical support level for Bitcoin, while the broader crypto market needs to maintain the $2.9 trillion market cap level.

  • Bitcoin Tests $85K: Fed Meeting Sparks Potential $90K Breakout

    Bitcoin Tests $85K: Fed Meeting Sparks Potential $90K Breakout

    Bitcoin (BTC) has surged nearly 4% in the past 24 hours amid heightened market volatility, with analysts eyeing a potential breakout to $90,000 as the cryptocurrency retests critical resistance levels. Recent market analysis had highlighted the importance of the $80K support level, which has now proven resilient.

    FOMC Meeting Catalyzes Bitcoin’s Price Action

    On Wednesday, Bitcoin broke above the crucial $85,000 resistance, marking a significant 5% recovery from recent lows. The move coincided with the Federal Reserve’s latest policy announcement, which maintained interest rates at 4.50% while signaling potential rate cuts later in 2025.

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    Critical Price Levels to Watch

    Technical analysis reveals two key price zones that traders should monitor:

    • Support Zone: $80,000-$81,000
    • Resistance Zone: $85,000-$86,000

    The Fed’s dovish stance has reinforced bullish sentiment, with multiple analysts suggesting that a successful break above $86,000 could trigger a rapid move toward $90,000.

    Technical Indicators Signal Potential Breakout

    The Daily RSI shows decreasing selling pressure, while trading volume patterns suggest accumulation at current levels. Key observations include:

    • Declining seller volume over the past week
    • Increasing buyer presence at support levels
    • RSI downtrend since November 2024 acting as resistance

    FAQ Section

    What is the next major resistance level for Bitcoin?

    The immediate resistance lies at $86,000, with $90,000 being the next significant psychological level.

    How might the Fed’s decision impact Bitcoin’s price?

    The Fed’s dovish stance and planned reduction in balance sheet tightening could provide sustained support for Bitcoin’s price action.

    What are the key support levels to watch?

    The primary support zone is between $80,000-$81,000, with secondary support at $73,500.