Bitcoin started the week strong, rising nearly 7%, but has now pulled back to around $74,000 after failing to hold above $76,000. The rally has slowed as traders wait for today’s Federal Reserve decision.
Meanwhile, popular trader DefiWimar has made a bold call, warning that Bitcoin could drop to $69,000. Here’s why?
Crypto trader DefiWimar has pointed to a major liquidity zone around $69,000, where nearly $4 billion in long positions are at risk.
According to trader DefiWimar, this level is important because it is not just a support zone, but an area filled with leveraged positions. When this much leverage builds up in one area, price doesn’t always bounce from it.
More often, it gets pulled toward it.
If Bitcoin drops toward this zone, it could trigger a chain reaction, long positions start closing, stop losses get hit, and forced selling begins.
That’s why these moves often feel sudden. It’s not always news-driven — it’s positioning.
This type of liquidation move has occurred multiple times in the past, for example, in August 2023, Bitcoin dropped below $29,000 and wiped out over $1 billion in long positions within hours.
Again in January 2024, BTC fell from around $49,000 to near $40,000, largely driven by liquidation pressure, not just headlines.
The pattern is similar, crowded longs, then a sharp reset.
Right now, Bitcoin is holding above key levels, but momentum is not as strong as it was earlier this week.
Crypto experts say a clean breakout above $76,000 looks unlikely for now, while a move below $71,000 could start building downside pressure.
The market is waiting for the Federal Reserve update, with expectations that rates will stay unchanged around 3.50%–3.75%. Even the data from CME FedWatch shows a 99% probability that interest rates will remain unchanged
Even without a rate change, markets will react strongly to Jerome Powell’s speech today.
For now, Bitcoin is sitting in a tight spot. If it holds above $71,000, the market may stay stable. But if the price starts slipping lower, that $69K zone could come into play quickly.
The Fed decision can drive volatility. Even if rates stay steady, Powell’s tone may push BTC up or down as markets react to future policy signals.
Key levels are $76K resistance and $71K support. A break below $71K could trigger selling pressure, while a breakout above $76K may signal strength.
Yes, Fed signals can shift sentiment fast. This can trigger liquidations, where leveraged positions close quickly, causing sharp Bitcoin price swings.
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