BTC price drops below $60k as bitcoin traders brace for FOMC ‘fireworks’

Bitcoin (BTC) plunged on September 18 Wall Street as crypto markets awaited the US Federal Reserve's interest rate decision.

Bitcoin Short Liquidations Expected in FOMC Count.

Data from Cointelegraph Markets Pro and TradingView showed a 1% BTC price drop following the start of the US trading session.

Traders expected a “big day” for the markets, the focus of the Federal Open Market Committee (FOMC) meeting and subsequent speeches and press conferences.

“Price has settled below a key resistance level. Expecting a slow day up to ±1s before the FOMC,” popular trader Jelle wrote in part of his latest X content.

“Fireworks tonight.”

The main subject of debate was the expected rate of depreciation, with both 0.25% and 0.5% being considered as options.

A shift in market expectations was seen over the weekend, and according to data from CME Group's FedWatch Tool, the odds now favor the latter.

“The market knows a cut is coming. Do you think it matters if it's 25bps or 50bps?” Trading resources Material Indicators BTC/USDT order book on major crypto exchange Binance has been requested in part of X's post.

Additional information from tracking asset CoinGlass revealed that key resistance levels are focused on $61,500 and $61,750.

Discussing the composition of the order book for the CoinGlass X account, he said, “I believe that short positions with high potential will be removed soon.

Earlier, Cointelegraph predicted in research that the $64,000 return would come “very quickly” if the Fed's announcement is attractive to risk appetite.

Traders are “convinced” by the high BTC price volatility

Further, trading firm QCP Capital noted that the effects of the Fed's decision will be felt in the short term.

Related: Bitcoin trader says it's still ‘too early' to call BTC price down

“The Fed met today and its importance cannot be overstated. Their decision will shape the path of financial markets in the medium to long term,” he said in a recent announcement sent to Telegram channel subscribers.

QCP has indicated different expectations on the size of the cut depending on the source, and there is variation in future decisions.

He summed it up.

“The direction and magnitude of market movement during and after the FOMC is unclear due to several uncertainties: 1. Interest rate decision (25bps or 50bps cut) 2. Dot plot forecast 3. Powell's press conference post-FOMCThat said traders adjust their positions over the next few weeks We are sure that volatility will be high in the days after the meeting, and the regime change could also signal the start of strong macro trends.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.