Ahead of the Federal Reserve’s policy announcement, Bitcoin eases from local highs, consolidating within a crucial mid-range support zone as traders anticipate volatility.
Bitcoin (BTC/USD) slipped to around $111,780, marking a 1% decline in the past 24 hours as markets turn cautious before the Federal Open Market Committee (FOMC) meeting scheduled later today. The move comes after the leading cryptocurrency faced repeated rejection near the $120,000 resistance zone, signaling that investors are positioning defensively amid macroeconomic uncertainty.
The latest chart structure shows BTC retreating from the red resistance band near $120,000—an area where selling pressure has historically emerged—while finding interim support around $111,000, highlighted by the orange demand zone. This level has acted as both support and resistance over recent months, suggesting that Bitcoin remains range-bound between $106,000 and $120,000 until a clear breakout occurs.
Trading volumes have remained moderate, indicating market indecision ahead of the FOMC outcome, which could dictate short-term direction. “The $111K area is an equilibrium level—neither bulls nor bears are fully in control. A hawkish tone from the Fed could push BTC back toward the $105K support, while a dovish stance might reignite momentum toward $118K or higher,” BitXJournal market analyst noted.
The chart also highlights a broader ascending recovery structure that formed after Bitcoin broke out from a falling wedge pattern in June, followed by repeated tests of both resistance and support levels since August. Despite short-term weakness, the green accumulation zone between $102,000 and $106,000 continues to attract buying interest from institutional traders, as indicated by periodic spikes in on-chain inflows.
“What’s critical now is how Bitcoin reacts to the Fed’s tone on inflation and rates,” said BitXJournal crypto strategist. “If liquidity expectations improve, BTC could quickly reclaim higher resistance levels. Otherwise, a retest of the lower range remains likely.”
With the FOMC announcement just hours away, Bitcoin’s consolidation near $111K underscores market caution. Traders are eyeing the green support area for signs of renewed accumulation, while resistance at $120K remains the key barrier to a bullish continuation. In the short term, macro signals—not just technicals—will dictate Bitcoin’s next major move.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.