Bitcoin continues to trade within a limited range, drawing attention from analysts and traders to potential market changes.
Current Market Analysis of Bitcoin
On Tuesday, Bitcoin traded in a tight range between $117,000 and $120,000, with indications pointing toward a daily close below $118,000. Analysts are focusing on support levels between $110,000 and $114,000, warning of a possible pullback unless market conditions change.
Key Events Impacting Price
Market participants are awaiting two major events that could shift Bitcoin's direction: the release of Federal Open Market Committee (FOMC) minutes and a White House report expected to detail the government's crypto policy and strategic Bitcoin holdings. There is widespread speculation that the report will disclose the exact number of Bitcoin currently held by the US government. Hopes are also high that former President Trump, seen as pro-Bitcoin, could formally endorse the creation of a US strategic Bitcoin reserve.
Market Movements and Liquidations
Ahead of these key events, traders have reduced their risk exposure across the board. Bitcoin's open interest dropped to $49.58 billion from $50.58 billion earlier in the day, according to TRDR. Data from Coinglass indicates that $173.8 million in long positions were liquidated over the past 12 hours, fueling further selling pressure.
The Bitcoin market is poised for important developments that could determine its direction. Traders remain cautious, but positive news could act as a catalyst for renewed market excitement.
