Bitcoin (BTC/USD) is down 0.5% as traders eye a potential local top ahead of the Federal Reserve's interest rate decision

Crypto trader Astronomer said on Tuesday there's a chance Bitcoin may form a short-term top around the FOMC meeting. He cautions this signal is weak by itself and shouldn't trigger trades without supporting data.

Bitcoin price slipped 0.5% over the past 24 hours as traders kept an eye out for a potential local top ahead of the Federal Reserve's interest rate decision on Wednesday.

What Happened: Crypto trader Astronomer said on Tuesday there's a chance Bitcoin may form a short-term top around the FOMC meeting.

The trader cautions that this signal is weak by itself and shouldn’t trigger trades without any supporting data.

"Keyword being May as I only act on strong signals & logic-based setups," he said.

While FOMC events have historically triggered greater than 85% accurate reversals, this time the strong quarterly uptrend could overrule that pattern.

Astronomer estimates a 76% probability that BTC continues upward from current levels, with a 24% chance of a shallow pullback.

The trader warns against shorting Bitcoin here or prematurely exiting longs, framing any dip as a "compound opportunity" rather than a reason to panic.

The strategy remains focused, mentally prepared, and rooted in strong trade management, consistent about earlier theories on price mechanics and stop-loss design.

What's Next: Meanwhile, crypto trader Titan of Crypto noted that BTC is consolidating between last week's high and low ahead of the FOMC decision and Fed Chair Jerome Powell's speech.

The daily MACD has flipped bearish, suggesting that momentum may be fading.

PattaTrades, another crypto trader, highlights that Bitcoin is trading back within a six-day composite range from before the monthly close.

He's eyeing a potential sweep below $63,850 for Long liquidations before entering new longs.

The trader expects muted volatility until after the FOMC, with range-bound setups preferred in the short term.