Bitcoin (BTC) starts the first full week of May with yearly open support in focus ahead of a key US economic policy decision.

Bitcoin (BTC) starts the first full week of May with yearly open support in focus ahead of a key US economic policy decision.

Bitcoin (BTC) price is starting the first full week of May with yearly open support in focus following some losses at the weekly candle close.

The world’s largest cryptocurrency faced some sell pressure as it reached lows of $93,350 on Bitstamp before rebounding, data from Cointelegraph Markets Pro and TradingView shows.

Liquidity had built up close to the spot price, both up and down, with bids getting partially filled due to the dip.

Now, the latest data from monitoring resource CoinGlass shows the largest nearby cluster of ask liquidity at $96,420.

Popular trader CrypNuevo highlighted two potential short-term bull scenarios in his latest outlook on X.

“In the case of long triggers, I like these two setups: Either a new local high ($98k) where we can see some LTF liquidations after a reclaim of the previous range highs (upper yellow line), or from much lower from the 1D50EMA retest if it's successful,” he wrote.

In the case of LONG triggers, I like these two setups:

Either a new local high ($98k) where we can see some LTF liquidizations after a reclaim of the previous range highs (upper yellow line), or from much lower from the 1D 50EMA retest if it's successful.

After a strong rally, BTC price is testing the crucial 1D 50EMA at $93k, a level that could determine the continuation of the bullish trend. A break below this moving average may open the door for further declines towards the 1D 100EMA at around $88k.

If the bulls manage to defend the 50EMA and generate a new higher low, it could set the stage for a move towards the next resistance zone between $98k and $100k.

If the bears manage to exert more pressure and pierce through the 50EMA, it could lead to a deeper correction, potentially reaching the 100EMA or even the 200EMA. However, such a scenario seems less likely at the moment.

As the dust settles on the May 4 weekly candle, attention turns to a U.S. macroeconomic event that could have a significant impact on crypto traders.

The Federal Reserve's interest rate decision is on May 7, and traders will be keeping a close eye on the meeting.

The central bank is still expected to keep rates on hold despite recent reports indicating that the U.S. economy may be entering a period of "stagflation" or even recession.

The meeting will also be a factor for those interested in the new lows of 50% probability for a rate cut, which is something that markets do not anticipate.

"The optimists are also likely to be keeping an eye on the administration, which is urging the Fed to cut rates despite the recent jobs report showing that the labor market is holding up better than economists expected," trading resource The Kobeissi Letter noted in its latest analysis.

"The president has been personally targeting Fed Chair Jerome Powell on social media to decrease the rates, and he's also voiced his displeasure over the recent reports of rising inflation, hoping that it will put more pressure on the Fed to adjust its monetary policy."

The news comes as the White House is also reportedly preparing a new executive order focusing on digital assets.

"The order, which could come as early as this week, is said to be focused on consumer protection in the fast-growing DeFi sector, potentially setting the stage for new regulations," a recent report by Bloomberg stated.

"It could also direct agencies to study the potential risks and benefits of a U.S. central bank digital currency, an initiative that has been discussed for some time."