The Federal Open Market Committee (FOMC) meeting is scheduled to take place at 3am and crypto market players are keenly watching every update released. According to some analysts, the Fed may introduce a rate cut or set the same decision, both of which could benefit the crypto market. However, a leading crypto analyst suspects that the FOMC meeting could cause instability in the market, and the price of Bitcoin (BTC) could experience a loss of up to 30%.
Sheldon The Sniper, a crypto analyst and YouTuber, noted that the FOMC meeting will cause increased volatility in the cryptocurrency market. In addition, he also stated that he can see "weakness" in the Bitcoin price chart, which could cause a large consolidation.
In a post on X, the crypto analyst hinted at a 20-30% drop for Bitcoin in the coming days. After that, Sheldon presented live on YouTube and highlighted the reasons behind Bitcoin's price correction. He analyzed the Bitcoin price graph on a 4-hour time scale and noted that if the hourly candle closes below $42,000, it could be an early sign of a major fall.
Additionally, Sheldon also noted that Bitcoin's large liquidity can be seen on the Heat Map, which could further depress the crypto's value. Additionally, the instability introduced through the FOMC meeting could be a catalyst in this scenario.
On the other hand, FlameseN, another technical analyst, cautioned holders of Bitcoin leverage and asked them to remain vigilant when the Fed decision is announced. He notes that monitoring volatility is very important to reduce losses. Furthermore, he also noted that Bitcoin "currently maintains Mid-Range & 6h 200SMA." Even so, he warned of a potential retest if values fall below this level.
Additionally, Michaël van de Poppe, stated that he expects the price of Bitcoin to be in the range between $38,000 to $48,000 in the short term. Furthermore, he predicted a potential pullback, in line with other analysts' opinions. Poppe took the X platform and wrote, “Possibly a correction in the short term after which a slight spike before the semi-final to $48K.”
