- Bitcoin’s price reaction depends on the Fed’s interest rate decision, with traders watching key resistance levels.
- A breakout above $107K–$108K could trigger a Bitcoin price rally, while $97K serves as strong support.
- Bitcoin remains in a bull market, but FOMC’s rate call may decide if BTC trends higher or faces a pullback.
Bitcoin has given mixed signals in the short term, especially in the past day, as it nears a critical price point. This happens just before the Federal Reserve’s FOMC meeting, which could majorly affect Bitcoin and the whole crypto market.
The Federal Reserve will announce its interest rate decision tomorrow at 7:00 PM GMT. Most experts expect rates to stay at 4.5%, though there’s a small chance of a 0.25% rate cut. Any surprise in the decision could shake things up in the market. If rates stay the same, the market probably won’t budge much, but a change could lead to a significant market reaction.
Related: Trump Returns, Bitcoin Waits: What FOMC 2025 Means for Crypto
What’s Next for Bitcoin’s Price?
Even with short-term dips or crashes, the overall trend still shows BTC is in a larger bull market. Currently, the weekly MACD shows a lack of bullish momentum. But, according to an analyst, that doesn’t mean the bull market is over. It’s more of a break before we could see another major price movement.
This is similar to last year when Bitcoin shot up after a couple of months of trading sideways. So, looking at February, BTC could see more momentum and potentially a price rally.
Related: Bitcoin: The Ideal Benchmark for Capital Allocation in AI-Driven Growth, Says Strive CEO
Key Support and Resistance Levels
Bitcoin is currently testing a previous support level around $103,000, which has now turned into resistance. A breakout above this level and a confirmation of support could mean a bullish shift in price structure. But, if Bitcoin can’t break above this level, the bearish trend could continue for now.
Further up, resistance can be found between $106,000 and $107,000. If the price goes past this zone, the next key resistance is between $108,000 and $109,000, near the all-time high.
These levels are important for confirming more upward momentum. On the downside, if Bitcoin pulls back, there’s strong support around $97,000. This level could provide a safety net if the price drops.
Also, the liquidation heatmap shows a lot of liquidity above $107,000–$108,000. A breakout above this zone could cause a squeeze of short positions, pushing the price even higher.
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