Bitcoin (BTC) Price Analysis: What's Next After the Pre-FOMC Drop?

Bitcoin's supertrend indicator remains green, meaning that the larger bull market is still in play. However, the weekly chart shows a bearish divergence.

U.S. crypto czar David Sacks has spoken about a “golden age in digital assets” following years of regulatory uncertainty.

In a highly anticipated conference earlier today, Sacks discussed various plans for digital assets, ranging from stablecoin regulation to a potential Bitcoin reserve. However, despite widespread interest, the much-hyped “Bitcoin Strategic Reserve” did not appear on the agenda.

Following the conference, Sacks confirmed that the administration is still assessing the idea of a Bitcoin reserve, naming it one of its top priorities. However, he noted that the concept is still in its early phase.

Bitcoin’s Price Drops Below $98K After Hitting $100K

As Sacks detailed the various plans for digital assets, Bitcoin’s price started to drop from the $100,000 mark. The world’s leading cryptocurrency is now trading at $98,000 after hitting a new all-time high earlier this week.

Bitcoin’s technical analysis: what’s next?

Bitcoin’s supertrend indicator remains green, suggesting that the larger bull market is still in play. However, an analyst points out a bearish divergence on the weekly chart, which has signaled periods of fading momentum in the past. Although it doesn’t always lead directly to a bear market, Bitcoin’s price action over the next few weeks will be crucial in determining whether a bearish trend takes hold.

The weekly MACD shows a loss of bullish momentum, and a potential bearish crossover is approaching. If this crossover occurs in the next couple of weeks, it could signal a bearish trend, similar to what happened in April 2024.

Important levels to watch

In the immediate short term, Bitcoin’s price is currently battling resistance between $100,000 and $103,000, having recently bounced off a key support level around $92,000. For now, the price is likely to remain in a range between these support and resistance levels.

With the oversold signal having played out, Bitcoin’s price is expected to move choppily and sideways over the next few days. A drop below $96,000 might confirm the bearish trend.

The Bitcoin liquidation heat map hasn’t changed much over the past day. Liquidity remains at around $91,000 and $88,000 on the downside, and $108,000 and $110,000 on the upside. These levels have stayed pretty consistent recently.

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