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Here are the Bitcoin predictions as BTC drops to $67,000 ahead of the FOMC

  • BTC has reached high liquidity at $67,000 and could reverse recent losses after the FOMC.
  • Despite the recent decline, trading companies stressed that traders are optimistic in the short term.

Bitcoin [BTC] Losses widened to as much as $67,000 as investors worried about the Fed’s decision.

The short-term pessimistic sentiment was also reflected in BTC ETFs as the products broke a months-long period of inflows.

On June 10, spot BTC ETFs recorded a daily net outflow of $64.9 million per SoSo value Data.

Bitcoin Predictions

Source: SoSoValue

The pessimistic mood followed stronger US labor market developments report on June 7, and additional volatility was expected at the FOMC (Federal Open Market Committee) meeting scheduled for June 12.

BTC’s decline has already reached a weekly low and retested a previous short-term demand of $66,800-$67,920. Interestingly, Hyblock Capital Data marked the level as an important area of ​​long liquidity.

Will the short-term support above $67,000 hold after the FOMC meeting or will it be overrun by sellers?

Bitcoin Predictions: Will $67,000 Stay?

Bitcoin forecast

Source: BTC/USDT, TradingView

The HTF (higher time frame) chart showed a record weakening of buying pressure, as shown by the southbound RSI (Relative Strength Index).

However, capital inflows into the king coin were still slightly above average at the time of writing, as the CMF (Chaikin Money Flow) shows.

Notably, $67,000 has prevented a further collapse in BTC price since mid-May, but a hawkish Fed decision could quickly prompt sellers to break below support.

But US senators led by Elizabeth Warren recently urged The Fed is considering cutting interest rates. If the Fed follows through on its request, the $67,000 could be maintained.

However, the recent decline has depleted liquidity at $68,000. However, the next significant liquidity was above that, at $70,000 and $72,000, according to Coinglass data.

This means that BTC could reverse recent losses if it keeps an eye on excess liquidity.

Bitcoin Predictions

Source: Coinglass

The bullish scenario was also projected from crypto trading firm QCP Capital, who said:

“As we await what the Fed has to say at this week’s FOMC meeting, the desk has observed more short-term bullish currents this session, with call skewness increasing versus puts.”

This meant that the company’s trading desk saw more bullish bets (call options) than bearish bets (put options) on the derivatives market.

Leading crypto options firm Deribit also reiterated QCP’s short-term bullish stance and noticed,

“Technical analysis suggests the potential for Bitcoin to rise, with traders eyeing an uptrend and considering call butterfly spread strategies.”

However, a hawkish stance from the Fed will put a damper on this optimistic thesis and could push the BTC price to $64,000 or lower.

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