- BTC had reached long liquidity of $67,000 and could recoup recent losses post-FOMC.
- Trading firms underlined the bullish near-term outlook despite the recent dip.
Bitcoin [BTC] extended losses to the region of $67,000 amid investor concerns about the Fed’s decision.
The short-term bearish sentiment was also reflected in the BTC ETFs, as the products broke a month-long streak of inflows.
On June 10, spot BTC ETFs recorded daily net outflows of $64.9 million per SoSo value facts.
Source: SoSo value
The bearish sentiment followed stronger US employment report on June 7, and additional volatility was expected at the FOMC (Federal Open Market Committee) meeting scheduled for June 12.
BTC’s dip has already hit a weekly low and retested a previous short-term demand range of $66.8K – $67.92K. Hyblock Capital is interesting facts marked the level as a key long liquidity area.
Will the short-term support above $67,000 hold after the FOMC, or will the sellers overwhelm it?
Bitcoin Predictions: Will $67,000 Hold?
Source: BTC/USDT, TradingView
The HTF (higher timeframe) chart showed a record weakening in buying pressure, as evidenced by the southern RSI (Relative Strength Index).
However, capital inflows into the king coin were still slightly above average at the time of writing, as shown by the CMF (Chaikin Money Flow).
Notably, the $67,000 has prevented a further decline in BTC from mid-May, but an aggressive move from the Fed could quickly push sellers to break below support.
However, US Senators, led by Elizabeth Warren, recently insisted the Fed to consider cutting interest rates. Should the Fed heed their call, $67K could hold.
That said, the recent decline has freed up long liquidity at $68,000. However, the next major liquidity was overhead, at $70,000 and $72,000, as shown in Coinglass’s data.
This meant that BTC could reverse recent losses if it looked at overhead liquidity.
Source: Coinglass
So was the bullish scenario projected by crypto trading firm QCP Capital, who said:
“As we anticipate what the Fed has to say at this week’s FOMC meeting, the desk saw more near-dated bullish flows this session, with call skew increasing versus puts.”
This meant that the company’s trading desk recorded more bullish bets (Call options) than bearish bets (Put options) in the derivatives market.
Leading crypto options firm Deribit also reinforced QCP’s near-term bullish stance noted,
“Technical analysis points to potential for a Bitcoin rally, with traders eyeing a bullish trend and considering Call Butterfly Spread strategies.”
However, an aggressive Fed will undermine the bullish thesis and could push BTC down to $64K or hit a low.