BTC

$66337.991

-1.96%

ETH

$1940.998

-2.91%

XRP

$1.42

-4.37%

BNB

$604.147

-2.32%

Analysis

Bitcoin Enters Danger Zone, Will FOMC Trigger a Crash?

3 mins mins
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 Key Insights:

  • Bitcoin nears critical resistance with signs of slowing momentum on short-term charts.
  • Liquidation data shows strong short squeeze as BTC breaks above recent key levels.
  • Traders remain cautious ahead of the FOMC, watching dollar strength and potential macro-driven moves.
Bitcoin Enters Danger Zone, Will FOMC Trigger a Crash?
Bitcoin Enters Danger Zone, Will FOMC Trigger a Crash?

Bitcoin was trading near the $90,600 to $92,000 area, which traders consider a possible resistance zone. This range includes two major Fibonacci levels: the 0.382 retracement at $90,619 and the 0.5 level at $92,016. Both have been areas of price reaction in the past.

As price pushes into this zone, momentum on the 2-hour chart is showing signs of exhaustion. The oscillator is reaching high levels, often seen when a move is running out of steam. A descending trendline from earlier highs also remains in place, adding further pressure at current levels.

Short-Term Structure Turns Upward

In the short term, Bitcoin’s structure has shifted. After reaching a low around $85,965, the price has started forming higher lows and higher highs. This pattern suggests the previous downtrend has paused or reversed, at least for now.

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With that shift, traders are watching for a possible move toward $91,967 and $93,383. These areas mark the next retracement levels, and if the current structure holds, price could continue to rise. If not, a drop below the most recent higher low would weaken the outlook.

Liquidations Reflect Sharp Market Move

Alongside price action, liquidation data from coinglass shows a wave of forced exits. Short positions worth $17.34 million were liquidated, compared to $7.74 million in longs. The large difference suggests that the recent move caught many traders on the short side.

Source: coinglass
Source: coinglass

This kind of short liquidation often follows a fast upward move. It creates more pressure as stop-losses are hit. However, some long positions were also closed out, showing that volatility remains on both ends of the market. This mix points to a market that is active, but not settled.

FOMC Decision Could Shape Next Direction

Attention now turns to the upcoming FOMC meeting. Traders are waiting to see whether interest rates or guidance from the Federal Reserve will shift market sentiment. One key factor is the strength of the U.S. dollar. If it weakens, crypto assets like Bitcoin could see more demand.

For now, positioning is cautious. One market observer noted,

 “Feels dangerous to be heavily positioned one way until we get more clarity later.” 

Source: TheLordofEntry/X
Source: TheLordofEntry/X

Bitcoin is at a point where any strong reaction—either from traders or from macro news—could decide the next big move.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Avatar of Olivia Stephanie

Olivia Stephanie

28 January 2026, 16:15:26 GMT +0000

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