As macroeconomic uncertainty heats up, Bitcoin's price broke below $95,000 in early trading on Monday, with investors remaining highly alert to the Fed's (Federal Reserve) policy and market volatility this week.
Intense tug-of-war between bulls and bears
According to Cointelegraph reports, Bitcoin's price has retreated from a 10-week high, approaching the opening price in early May. Analysts point out that there is a large number of long positions between $95,700 and $96,000, while the area between $96,500 and $97,000 is concentrated with short positions, forming a strong price 'magnet effect' that may trigger greater volatility.
$BTC liquidity map shows major heat! Dense longs cluster $95.7k-$96k, heavy shorts $96.5k-$97k right around current price (~$96.2k). These are price magnets. Expect chop/volatility as they get tested. Use these zones for stop loss placement (outside) & potential targets… pic.twitter.com/ujWTsgEdST
— TheKingfisher (@kingfisher_btc) May 3, 2025
Trader TheKingfisher stated on the social platform X:
"The current price range has become a battleground for bulls and bears, and significant volatility is expected."
On the other hand, data from CoinGlass also shows that Bitcoin's price collides with buying liquidity, with most sell orders concentrated around $97,200. As the market has recently seen multiple instances of 'liquidity grabs', market observers believe that this situation may continue as the psychological barrier of $100,000 approaches.
However, technical analyst Michaël van de Poppe pointed out that even if Bitcoin drops in the short term, as long as it can hold the $91,500 to $92,000 support, it can maintain the recent rebound trend.
"If it can hold the $91,500-$92,000 range, it will confirm that the market is ready to continue moving towards historical highs."
Market focuses on the Federal Reserve's interest rate decision
Market expectations for volatility in the new week remain high, especially with the Federal Reserve set to announce its latest interest rate decision on May 7. According to FedWatch data, the market currently expects no interest rate cuts in May, and last week's employment data exceeded expectations, reversing the previous anticipation of a rate cut in June. The market has generally recognized that any rate cut may have to wait until July.
In addition to interest rate issues, the outlook for the U.S. economy also casts a shadow over the market. Recent economic data shows a slowdown in growth, coupled with President Trump's continued pressure on the Federal Reserve to cut interest rates, making market sentiment even more tense. Van de Poppe added:
"Historical experience shows that cryptocurrencies and altcoins often undergo corrections in the week leading up to the Federal Reserve meetings. I expect this correction to end around Tuesday, after which the market will resume its upward trend."
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