- Bitcoin’s depreciation on the charts wasn’t unexpected to some
- The upcoming FOMC meeting could have an impact on how the crypto reacts until the halving
Bitcoin’s [BTC] losses hit +$10k after dropping from its most recent all-time high of $73.7k to a low of $62.9k, at press time.
With the U.S FOMC’s (Federal Open Market Committee) meeting coming into focus this week, 99% of polled interest traders expect Fed rates to remain unchanged at 525 – 550 (bps) basis points. A clear Fed communication on when to expect interest rate cuts could be bullish for risky assets like Bitcoin.
However, while key figures in the industry maintain a long-term bullish position, they’ve been offering differing reasons for the recent retracement.
Bitcoin to hit $125K?
In a recent interview with CNBC TV, Jason Urban, Global Head of Trading at Galaxy Digital, asserted that BTC could consolidate before hitting a new all-time high before the end of the year.
“You need a healthy price discovery and healthy market action. And so, a little bit of retracement here, off the $73,000 highs.”
Additionally, Urban noted that BTC could enter a consolidation phase before building enough momentum to seek new highs of around $125k.
“I think you’re going to see a steady build. It’ll build a base in here, then all of a sudden start to really drive higher. So I’ll play the diplomat and say $120k – 125k.”
On the recent retracement that saw the cryptocurrency extend weekend losses, Urban added,
“A little bit of retracement is okay.”
Kraken exchange’s Head of Strategy Thomas Perfumo said something similar too, all while maintaining a long-term bullish outlook.
Is BTC’s retracement a buying opportunity?
As the world’s largest cryptocurrency kept losing value last week, Crypto.com CEO Kris Marszalek termed retracement “a healthy move, removing leverage built up in the system.”
Ergo, Urban’s expectation of consolidation before another leg of the rally could mean the retracement is a ripe buying opportunity. On the contrary, it could also be a trap if BTC drops even lower on the charts.
At the time of writing, BTC was on the verge of dropping below $63k as traders awaited the U.S Fed meeting and rate announcement. Only time will tell which exec was right about Bitcoin’s future movements all along.
