Bitcoin Drops to $103K as Traders Brace for Fed Rate Decision

Bitcoin Tumbles to $103K Ahead of FOMC Decision as Liquidations Surge and Technicals Signal Volatility

  • Bitcoin fell to $103,300 as traders reduced risk ahead of the Federal Open Market Committee (FOMC) decision.
  • Technical indicators suggest Bitcoin may rebound between $102,000 and $104,000.
  • Over $434 million in Bitcoin futures were liquidated in the past 24 hours due to leveraged trading.
  • Mid-term holders realized $904 million in profits, while long-term holders remain mostly inactive.
  • Breaking and holding above $106,748 could support a Bitcoin recovery toward $112,000, but a drop below $98,000 could signal further losses.

Bitcoin’s price dropped to $103,300 as investors cut back on exposure before the upcoming FOMC interest rate announcement scheduled for Wednesday. The decline came after a bearish weekly close and was made worse by ongoing geopolitical tensions, including the Israel-Iran conflict.

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Data from Swissblock’s market pulse aggregator, Bitcoin Vector, shows this price move matches a seasonal slowdown and slowing network growth, pointing to weaker spot demand. In the last day, Bitcoin futures liquidations surpassed $434 million, indicating that the slide was largely driven by leveraged trades as traders adopted a more cautious stance.

While the Bitcoin Coinbase Premium Index—which tracks buying on U.S. platforms—remained positive most of June, this did not prevent price declines due to overall market caution. According to Glassnode, mid-term holders (who held Bitcoin for 6–12 months) realized $904 million in profits on Monday, representing 83% of all realized gains, a shift from longer-term holders who previously led these actions.

Bitcoin researcher Axel Adler Jr. reported that long-term holders are still not selling in large volumes, which historically signals a bullish stance. The MVRV Z-score, a measure of market value versus realized value, remains healthy, while continued positive Coin Days Destroyed (CDD) momentum suggests current sales are calculated rather than panic-induced. Similar market conditions in the past have led to rebounds of 18–25% within two months.

Technically, analysts see strong liquidity support and a key order block between $102,000 and $104,000, hinting that Bitcoin might bottom in this zone. Bollinger Bands, which measure price volatility, are narrowing, pointing to a likely increase in volatility soon. The mid-level of the bands, around $106,000, serves as dynamic resistance. A confirmed breakout and closing price above $106,748 would validate a shift toward $112,000. If Bitcoin decisively slips below $100,000, the next crucial level could be $98,000.

Data from Alphractal shows $98,300 as an important support, particularly for short-term holders. “As long as Bitcoin stays above the STH Realized Price, we can still consider the market to be bullish. The scenario would only change if BTC loses the $98K level aggressively, which could trigger a deeper drop.”

This article does not provide investment advice. All investments carry risks, and readers should do their own research before making decisions.

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