Key Points:

• Bitcoin has faced liquidity challenges near spot prices by the end of the week.

• Market analysts have noted significant price levels of BTC dropping below $95,000.

• Upcoming interest rate decisions from the Fed are crucial macro events to keep an eye on next week.

Bitcoin (BTC) dipped to $95,000 at the end of the week on May 4, as traders anticipated more macro-related downturns.

BTC price liquidation forecasted after a 10-week high

Data from Cointelegraph Markets Pro and TradingView indicated a retreat towards earlier highs in May.

As discussions about critical levels continued, Bitcoin accumulated substantial liquidity at spot prices, setting the stage for potential volatility.

“Currently, high-density long cluster prices are around 95.7k-96k, with heavy shorts at 96.5k-97k (approximately 96.2k).”

“These levels act as price magnets. Anticipate volatility as these tests occur.”

The newest data from Coinglass suggests that prices are conflicting with buy liquidity, mostly clustered around $97,200.

In the past week, several liquidity attempts have been described as “grabbing,” with some anticipating this trend to continue as the vital $100,000 threshold looms closer.

“The $94,000 to $97,000 positions were wiped out over the weekend,” summarized popular trader Bitbull.

Crypto Trader, Analysts, and Entrepreneurs discussed that there remains ample opportunity to reassess support while building on a recent rebound.

“For BTC, I want to see it above $91.5-92K,” he mentioned to followers that day.

“This would confirm the foundation for a new all-time high, with support from the earlier range reaffirmed.”

Bitcoin’s potential downsides influenced by Fed rate decisions

With the U.S. Federal Reserve set to reveal its interest rate decision, expectations of volatility have been elevated heading into the new week.

Market sentiment appears heightened before this event, with warnings of a recession and pressure from former President Trump combined with hawkish signals from Fed officials.

“It’s worth noting that less than a month later, Trump has already urged Powell and the Fed to cut interest rates three times…”

However, the latest figures from CME Group’s FedWatch tool suggest minimal chances of a rate cut on May 7.

“Keep in mind that the behavior of Crypto and Altcoins tends to adjust in the week leading up to the Fed meeting,” commented Michael Van de Poppe.

“This phase will conclude on Tuesday, and we expect growth from that point.”

This article does not provide investment advice or recommendations. All trading involves risk, and readers should conduct their own research prior to making decisions.