Bitcoin’s trading range has tightened significantly in recent weeks, with volatility narrowing from $4,200 to $2,300 daily fluctuations. This compression pattern suggests an imminent price expansion as markets await pivotal regulatory and macroeconomic developments.
Three major upcoming events are poised to influence market sentiment: The Federal Open Market Committee’s interest rate decision, the White House’s forthcoming cryptocurrency policy report, and an upcoming speech by Federal Reserve Chair Jerome Powell. These catalysts could drive directional momentum and liquidity shifts across cryptocurrency markets.
Current derivatives metrics indicate heightened trader caution, with Bitcoin’s aggregate open interest declining to $49.58 billion. Recent long liquidations totaled $173.8 million, reflecting increased risk aversion. Should the Federal Reserve maintain current interest rates between 4.25%-4.50% while the White House confirms Bitcoin reserve strategies, analysts suggest bullish scenarios could test support between $110,000-$114,000 or push toward the $122,000 resistance level.
Market observers emphasize that futures positioning and liquidity conditions remain critical factors in Bitcoin’s near-term price trajectory. Professional traders are advised to closely monitor derivatives flows and regulatory announcements for emerging opportunities as these high-impact events unfold.