Bitcoin Under Pressure

Bitcoin is back in the spotlight this week amidst a spate of heavy selling which has seen almost $1 billion worth of long positions liquidated in the last 24hrs. The futures market has crashed back below the $100k mark, down around 7% on the day so far as losses mount. The driver behind the move looks to be position covering ahead of the FOMC this week. A broader dip in risk assets is feeding into negative sentiment as traders brace for the Fed on Wednesday.

Fed Expectations

The bank is widely pegged to keep rates on hold while traders will be looking for guidance on future rate projections. We’ve seen a dovish shift in pricing recently with pricing for a March cut now around the 45% mark and may above 50%. If the Fed reinforces these dovish expectations this week, this could revive risk appetite seeing a fresh move higher in BTC. However, if the Fed pushes back and takes a more hawkish tone, pricing for March and May cuts could fall, leading to a deeper move lower in BTC as risk appetite dwindles near-term.

Trump Outlook

Looking ahead, whole we might see further volatility near-term, BTC is still expected to enjoy strong gains over 2025. Support from the Trump administration is cited as the cornerstone of the bullish outlook and his move last week establish a working group advisory on crypto has been seen as the first step towards a possible strategic bitcoin reserve which would be firmly bullish for BTC if established.

Technical Views

BTC

The failure at the 107,855 level could mark a double top structure which, along with huge bearish divergence on momentum studies readings, suggests the potential for a deeper push lower in BTC. Price is now back under 100,195 and is retesting the broken bear channel highs. Below here, 91,750 is the next structural support to watch.