Saltık Bitcoin is facing the US presidential election and the Fed interest rate decision this week, testing the $69,000 level and struggling to approach an all-time high. These developments are among the factors that will create significant volatility for the BTC price.
1. BTC Price Struggle at Old Resistance Levels
Bitcoin, which rose to $73,500 last week, disappointed investors by falling below $67,500 over the weekend. BTC/USD, although experiencing a slight recovery, quickly lost momentum. Volatility is expected to be inevitable with the approaching US presidential elections.
Popular trader Skew analyzed the liquidity zones in the market, stating that there is buying liquidity and depth at $67,000-$65,000, and selling liquidity above $73,000. “The large order book between $66,000 and $73,000 could impact liquidity and volatility,” Skew said, predicting that it could move quickly between these levels.
2. Fed Rate Decision: Another Volatility Effect After the Election
The Fed rate decision, which will come right after the US presidential election, will be another major catalyst for Bitcoin and the broader crypto market. A Fed rate cut could potentially lead to a price increase for Bitcoin. However, if interest rates are not held steady or increased, market reactions could be more complex.
3. Bitcoin Dominance Rate at its Peak
Bitcoin’s market dominance has reached its highest level in three and a half years. This suggests that BTC is dominating the crypto market in terms of market value, with altcoins lagging behind. The high dominance rate indicates that investors are becoming more confident in Bitcoin as a mainstream crypto asset.
4. Bitcoin Network Fundamentals Reach New Highs
This week, fundamental indicators on the Bitcoin network are about to reach new highs. Indicators such as hash rate and mining difficulty in particular indicate that the network’s security and strength are increasing. This is a factor that further strengthens Bitcoin’s fundamental structural strength and supports its long-term price stability.
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5. Election Results Could Be a “Sell the News” Event
With the election results becoming clear, many analysts are drawing attention to the “sell the news” event. In such events, investors may sell when the expected big news occurs, which can cause a drop in price. However, the Fed’s interest rate decision following the election results could increase volatility after the sale, leading to short-term price movements.
With these developments, an eventful week is expected for Bitcoin, and especially the liquidity levels between $66,000 and $73,000 stand out as areas where price fluctuations may intensify.
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