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Bitcoin’s reaction to the Fed’s interest rates decision is dependent on traders’ attention to key resistance levels.
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A breakout over $107K-$108K may trigger a Bitcoin rally. $97K is a strong support.
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Bitcoin is still in a bullish market, but the FOMC’s rate decision may determine if BTC continues to trend higher or experiences a pullback.
Bitcoin has been sending mixed signals, especially over the last day, as the price of the cryptocurrency is approaching a critical level. This is just before the Federal Reserve FOMC meeting which could have a major impact on Bitcoin and the entire crypto market.
Federal Reserve will announce their interest rate decision at 7:00 PM GMT tomorrow. The majority of experts expect rates to remain at 4.5%. However, there is a small chance that the rate could be cut by 0.25%. The market could be thrown by a surprise decision. If rates remain the same, there is little chance that the market will move, but a change in the rate could cause a market reaction.
Related : Trump Returns and Bitcoin Waits – What FOMC 2025 Means to Crypto
What’s next for Bitcoin’s price?
Even with short-term crashes or dips, the overall trend shows BTC to be in a bull market. The weekly MACD currently shows a lack bullish momentum. According to an analyst, this does not mean that the bull market has ended. It’s more like a break until we see another major price move.
It’s similar to last year, when Bitcoin exploded after a few months of trading in the red. BTC may see more momentum in February and possibly a price rally.
Related:Bitcoin is the ideal benchmark for capital allocation in AI-driven growth, says Strive CEO
Key Support and Resistance Levels
Bitcoin is currently testing an old support level of $103,000 which has now become resistance. A breakout above this support level and confirmation of the support could mean a shift in price structure to the bullish. If Bitcoin cannot break above this level then the bearish trend may continue.
Further resistance is found between $106,000 to $107,000. If the price moves past this zone, then the next major resistance is between $108,000 to $109,000, which is near the all-time highest.
These levels are crucial for confirming a more upward momentum. If Bitcoin falls, $97,000 is a strong support level. This level could act as a safety net in the event of a price drop.
The liquidation heatmap also shows a large amount of liquidity above $107,000 to $108,000. A breakout above this area could cause a squeeze on short positions, pushing prices even higher.
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