Despite the Federal Reserve (Fed)\u2019s announcement of a 25-basis-point rate cut, Bitcoin (BTC) has dropped nearly 4% in the past 24 hours, losing its local range low for the first time in a week. Some analysts have warned that this week\u2019s close is crucial for the flagship crypto\u2019s short-term performance.<\/p>\n
On Thursday, Bitcoin dropped<\/a> below the recently reclaimed $110,000 area, hitting a one-week low of $106,700. Notably, the cryptocurrency has been trading within the $108,000-$120,000 price range since July, but has failed to reclaim the range highs after the early October correction.<\/p>\n Amid this performance, Ted Pillows suggested<\/a> that the market volatility was expected, as BTC has shown a similar price action since the start of Q3. The analyst explained that Bitcoin has dropped 6%-8% after the last three Federal Open Market Committee (FOMC) meetings, but it has also made a new all-time high (ATH) before the next one.<\/p>\n According to the chart, BTC\u2019s price reached its local bottom 5-9 days after the meeting, quickly recovering from the drop and rallying to new highs in the coming weeks. As price retests the $106,000 area, Ted predicted that a repeat of the same playbook could happen.<\/p>\n However, he warned<\/a> that Bitcoin must reclaim the $113,500 in the coming days to prevent a larger pullback. \u201cA weekly close below that level will increase the likelihood of a bigger correction,\u201d the analyst explained.<\/p>\n Similarly, Rekt Capital pointed out that Bitcoin must close the week above the $114,500 to turn this level back into support. He noted<\/a> that after the recent performance, a volatile retest of this level would be \u201cperfectly fine\u201d as long price closes above this crucial level at the end of the week.<\/p>\n Confirming the Range Low of ~$114k as support would confirm re-entry into the Range, kickstart consolidation within the Range again, and enable a move across it towards the Range High of ~$119000 (red) in an effort to breakout from it and challenge $120k+ once again.<\/p>\n Micha\u00ebl van de Poppe affirmed<\/a> that $112,000 is the next key area to break before a new ATH, as it has been a crucial resistance level in the daily timeframe for the past few weeks. Per the post, a breakout from this area could set the base for a retest of the $119,000-$120,000 zone.<\/p>\n On the contrary, a rejection from this level could send the price toward<\/a> the $103,000 mark or lower, he warned. \u201cI do think we\u2019ll see a new ATH in November,\u201d the market watcher added.\u201d<\/p>\n Meanwhile, Daan Crypto Trades highlighted that BTC is \u201cjust playing ping pong\u201d between its key levels and will continue to move within its range<\/a> until one of the boundaries is successfully broken.<\/p>\nIs BTC\u2019s End-Of-Year Rally Still On?<\/h2>\n