Bitcoin Slips Below $80K as Fed Meeting and BOJ Risk Loom This Week
Bitcoin slipped nearly 2% to about $79,300 on Monday morning. Traders are cutting risk before the Federal Reserve meeting this week.
Tech stocks across Asia also fell as the AI trade lost more steam. The Fed will announce its decision on Wednesday, October 28.
Why Is Bitcoin Down Today?
Traders are de-risking. Jeff Mei, chief operating officer at BTSE, said all eyes are on how strongly Fed Chair Kevin Warsh hints at a December hike.
Mei also pointed to record-high oil, the escalating US-Iran conflict, and inflation. He said the Fed could sound aggressive, meaning higher rates and less liquidity.
Oil gave a little relief. Brent crude fell 2% from a six-month high to about $114 a barrel after President Trump said a decision on Iran is near. Treasuries rose.
The Bank of Japan meets October 29 to 30. A hawkish surprise could lift the yen and force carry trades to unwind.
Are Other Crypto Coins Falling Too?
Selling hit almost every major token.
Asset | Price | Daily Move |
BTC | About $79,300 | Down nearly 2% |
ETH | Just above $2,300 | Down nearly 3% |
XRP | $1.28 | Down about 3% |
SOL | About $100 | Down 2% |
DOGE, ZEC, HYPE, BNB | Not listed | Down 1% to 2% each |
TRX was the only major in the green, up less than 1%.
What Is the Coinbase Premium Gap and Why Is It Negative?
As per Arab Chain, the index fell to -118.49 US dollars, its lowest level in five months.
It means BTC is cheaper on Coinbase than on Binance. That points to weaker demand from US buyers.
Will the Fed Meeting Move Bitcoin?
CME FedWatch shows a 90.6% chance the Fed holds rates at 3.75% to 4.00%. A 25-basis-point hike has a 9.4% chance.
Timeframe | Hold (3.75%-4.00%) | Hike (4.00%-4.25%) |
Now | 90.6% | 9.4% |
1 day ago (Oct 23) | 90.0% | 10.0% |
1 week ago (Oct 16) | 84.5% | 15.5% |
1 month ago (Sep 25) | 35.8% | 64.2% |
So the words around the decision may matter more than the decision itself.
Is the Crypto Bear Market Back?
Trader Jason Pizzino posted a video asking that very question after the drop below $80,000.
How Many BTC Longs Were Liquidated Today?
Metric | Value |
Futures volume (24h) | $37.61 billion (down 14.69%) |
Open interest | $53.73 billion (down 0.40%) |
Options open interest | $38.49 billion (up 0.37%) |
Long/short ratio | 0.9685 |
Liquidations (24h) | 33.09M(27.08M long, $6M short) |
Liquidations (1h / 4h / 12h) | $1.59M / $15.46M / $26.88M |
Shorts hold a slight edge overall. Yet account ratios favor longs: Binance 2.268, OKX 2.21, and Binance top traders 2.3921 (accounts) and 1.6582 (positions).
Options volume fell 33.22% to $2.36 billion. Circulating supply is 20.10 million BTC out of 21 million.
What Are the Support and Resistance Levels for BTC?
Price sits below the 20-day EMA at $81,846 and the 50-day EMA at $80,733. The RSI is near 41, which shows weak momentum.
Level | Type | Note |
$84,000 to $87,404 | Resistance | Upper channel, range top |
$82,500 | Resistance | Floor lost last Thursday |
$80,700 to $81,850 | Resistance | 50-day and 20-day EMA |
$79,000 to $78,000 | Support | Immediate zone |
$77,629 | Support | 100-day EMA |
$76,300 to $74,000 | Support | 200-day EMA and next target |
Liquidity clusters sit near $81,500 and $79,000. With sellers in control, a sweep of the downside cluster may come first.
Where Could Bitcoin Go Next?
If $79,000 to $78,000 breaks, a slide toward $76,300 to $74,000 is possible.
If buyers defend support and reclaim $80,700 to $81,850, a move toward $84,000 to $87,400 opens up.
For now, the chart favors more downside or sideways trade. Nothing is certain.
Disclaimer
This article is for information only and is not financial advice. Crypto is volatile, and you can lose money. Do your own research and speak with a licensed advisor before investing.
