Bitcoin (BTC) retreated below the $95,000 mark over the weekend, closing the week with increased volatility as traders braced for macroeconomic developments and key liquidity levels came into play.
After briefly reaching multi-month highs, Bitcoin’s price action reversed course late Saturday, dipping into the $94,000–$95,000 range. Analysts attributed the decline to a convergence of dense liquidity zones, with both long and short positions clustered tightly between $95,700 and $97,000. These areas have become flashpoints for rapid price swings, drawing attention from market participants seeking short-term momentum.
“Prices tend to gravitate toward liquidity-rich zones,” noted prominent trader TheKingfisher on X. “The overlapping long and short clusters are likely to fuel more choppy moves.”
Data from CoinGlass, a crypto market analytics platform, revealed concentrated sell-side liquidity near $97,200, reinforcing the potential for turbulence as prices approach this threshold. Over the past week, Bitcoin has made several brief spikes above resistance, only to be met with heavy liquidation as orders were filled and momentum faded.
According to trader BitBull, a significant number of positions opened between $94K and $97K were liquidated during the weekend, hinting at a temporary market reset. Despite the pullback, some analysts remain optimistic.
Michaël van de Poppe, a well-followed crypto strategist, suggested that a short-term retracement could pave the way for further gains. “As long as Bitcoin holds above the $91.5K–$92K range, the bullish structure remains intact,” he said, adding that this zone could now act as a key support level on the path toward new all-time highs.
The correction comes at a critical moment, with investors eyeing the U.S. Federal Reserve’s upcoming decision on interest rates. Scheduled for May 7, the Federal Open Market Committee (FOMC) meeting could sway market sentiment significantly, particularly in light of recent comments from policymakers and broader economic signals.
While speculation around a near-term rate cut remains minimal—data from the CME Group’s FedWatch Tool shows low odds—uncertainty around inflation, growth, and political pressure continues to loom over financial markets. Former President Donald Trump recently voiced concerns about the economy, echoing recession fears that could influence the Fed’s tone.
Van de Poppe urged traders to remain cautious ahead of the decision, noting that crypto markets often experience downward pressure in the days leading up to major economic events. “Corrections ahead of Fed meetings are common,” he explained. “We may see this one bottom out early in the week, followed by a relief rally.”
