CMC News

$BTC Risks $76K Drop If Key Support Breaks, Says Analyst

#Bitcoin is holding a crucial Fibonacci support level that analysts warn must be defended to prevent a potential decline to $76,000, matching lows last seen in April.

Crypto analyst Daan Crypto Trades identified the 0.382 Fibonacci retracement zone as the key technical level requiring defense from bulls. A break below this support could trigger a fall to April lows around $76,000, representing the last major support before testing lower market structure.

$BTC experienced another short leverage flush late Sunday, briefly falling below $88,000 before quickly recovering above $91,500. Analyst Bull Theory characterized the move as manipulation during low-liquidity weekend trading designed to liquidate both leveraged long and short positions.

The Federal Open Market Committee's monetary policy meeting concluding Wednesday will announce a rate decision, with a 0.25% cut widely anticipated by markets. #Fed Chair Jerome Powell previously signaled a non-linear, data-dependent easing path rather than a clear cutting cycle, according to 10x Research head Markus Thielen.

Markets lost momentum following October's rate cut after Powell's cautious messaging. Thielen noted the market expects a 25-basis-point cut on Dec. 10 followed by a cautious tone, which would mirror October's hawkish execution and sustain mild pressure through year-end.