Bitcoin on the Brink of $95K: Traders Brace for Chaos as Fed Rate Cut Looms

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Key points:

  • Bitcoin is out there making a move for that sweet liquidity at the spot price, just in time for the weekly close.

  • Market gurus are eyeing those crucial BTC price levels, especially below $95,000 (yikes).

  • Get ready for a rollercoaster, because the Fed’s interest rate decision is coming up, and it’s a big one.

So, Bitcoin (BTC) decided to take a dive toward $95,000 into the May 4 weekly close, like it’s just casually preparing for more macro chaos. Traders? Oh, they’re buckling up for what could be a wild ride.

Bitcoin chart

BTC Price Liquidations Pile Up After 10-Week Highs – Oops!

According to data from CryptoMoon Markets Pro and TradingView, BTC/USD is taking a little breather after those glorious multimonth highs, retreating toward the May open. Some say it’s just part of the plan.

Bitcoin is happily bumping into liquidity clustered around the spot price, creating a perfect storm for volatility. Traders are speculating on what comes next, but here’s the kicker: No one really knows, because it’s all about those key price levels.

“Dense longs are chilling around 95.7k-96k, heavy shorts are camping at 96.5k-97k, right around current prices (~96.2k),” said TheKingfisher, a trader who clearly knows how to stir the pot on X.

“These are price magnets. Expect some serious chop/volatility as they get tested.”

Bitcoin liquidity levels

Now, the latest intel from CoinGlass shows price dancing with buy liquidity, mostly hanging out around $97,200. As the $100,000 mark inches closer, some say Bitcoin’s just having fun with these liquidity grabs.

$BTC

I’m eyeing that gap and tap before a liquidity grab at $100k—just wait and watch

— NiFτy (@niftyinvest) May 4, 2025

And the weekend saw a little price “flushing” from $94K–$97K, according to BitBull. Oops.

Crypto trader and all-around market wizard Michaël van de Poppe is betting on a fresh dip for BTC/USD, but hey, there’s still hope for a comeback. He just wants BTC to stay above $91.5–92K, which would signal a lovely rally toward a new all-time high (fingers crossed).

“If we’re holding above $91.5-92K, that’s my cue for a continuation towards a new ATH. Let’s just pray it doesn’t crash before then.”

Bitcoin price prediction

Bitcoin Braces for Fed Drama: Expect Volatility (It’s Gonna Be a Wild Week!)

As the new week kicks off, expect a whole lot of volatility in the market. Why? Oh, just the little matter of the US Federal Reserve deciding on interest rates. You know, no big deal.

CryptoMoon is all over it, reporting that the stakes are sky-high for market sentiment. Recession warnings are in full swing, with a little help from President Trump and his demand that the Fed cuts rates. What’s new, right?

NOTE: In under a month, Trump has already pushed Powell and the Fed to lower interest rates three times. Someone’s got to give in, right?

— André Dragosch, PhD⚡ (@Andre_Dragosch) May 2, 2025

But don’t get too excited—CME Group’s FedWatch Tool says the chances of a rate cut on May 7 are still as slim as a Bitcoin bull run on a bad day.

Federal Reserve rate decision

Van de Poppe, never one to shy away from a prediction, suspects we might see the end of a correction around Tuesday, followed by an upward move. Let’s all hold our breath for that.

“I think we’ll wrap up this correction by Tuesday and then things should head up from there. Fingers crossed it’s not just wishful thinking!”

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2025-05-04 17:32