BTC price slips from $60K as Bitcoin traders brace for FOMC ‘fireworks’

Bitcoin (BTC) dipped at the Sept. 18 Wall Street open as crypto markets anticipated the US Federal Reserve interest rate decision.

Bitcoin short liquidations expected in FOMC countdown

Data from Cointelegraph Markets Pro and TradingView showed a 1% BTC price drop accompanying the start of the US trading session.

Traders anticipated a “big day” for the markets, with the Federal Open Market Committee (FOMC) meeting and subsequent speech and press conference firmly the center of attention.

“Price sitting right below a key resistance level. Expecting a slow day, until ±1h before FOMC,” popular trader Jelle wrote in part of his latest content on X.

“Fireworks tonight.”

A key topic of debate was the size of the prospective rate cut, with both 0.25% and 0.5% viewed as possibilities.

Shifting market expectations saw an about-turn over the weekend, and according to data from CME Group’s FedWatch Tool, odds now favor the latter.

“The market knows a cut is coming. Do you think it matters whether it’s 25bps or 50bps?” trading resource Material Indicators queried in part of an X post showing BTC/USDT order book liquidity on the largest crypto exchange, Binance.

Further data from monitoring resource CoinGlass spelled out that key resistance levels overhead are centered on $61,500 and $61,750.

“I believe that the high leverage short positions will be liquidated soon,” CoinGlass’ X account revealed while discussing order book composition.

Earlier, Cointelegraph reported on research that predicted that a return to $64,000 could come “very quickly” should the Fed announcement prove attractive to a risk-on mood.

Traders “confident” of high BTC price volatility

Continuing, trading firm QCP Capital said that the repercussions of the Fed’s decision would be felt beyond short timeframes.

Related: Bitcoin trader says it’s still ‘too early’ to call BTC price bottom

“The Fed meets today and its significance cannot be overstated. Their decision will shape the path of financial markets in the medium to long term,” it began in its latest bulletin sent to Telegram channel subscribers.

QCP noted varying expectations on the size of the cut based on the source, a divergence also in place for future decisions.

It summarized:

“The direction and magnitude of market movements during and post FOMC remain unclear due to multiple layers of uncertainty:1. Interest rate decision (25bps or 50bps cut)2. Dot plot projections3. Powell’s press conference post-FOMCThat said, we are confident that volatility will be high in the days following the meeting, as traders readjust their positions over the next few weeks. The regime change could also signal the start of strong macro trends.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.