Bitcoin Waits: What FOMC 2023 Means for the Crypto Market

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.

Bitcoin price has been giving mixed signals in the short term, especially over the past 24 hours, as it approaches a crucial price point. This comes just ahead of the Federal Reserve’s FOMC meeting, which could have a major impact on Bitcoin and the broader crypto market.

The Federal Reserve will announce its interest rate decision on Wednesday at 7:00 PM GMT. Most experts are expecting rates to remain at 4.5%, with a small chance of a 0.25% rate cut. Any surprise in the decision could send shockwaves through the market. If rates remain the same, the market will likely not move much, but a change could lead to a strong market reaction.

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What’s Next For Bitcoin Price

Despite any short-term dips or crashes, the overall trend still shows BTC in a broader bull market. At the moment, the weekly MACD is showing a lack of bullish momentum. However, according to one analyst, this doesn’t mean the bull market is over. Instead, it’s more of a pause before we could see another major price movement.

This is similar to what happened last year when Bitcoin rallied after a couple of months of trading sideways. So, looking at February, BTC could see more momentum and potentially a price rally.

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Key Support and Resistance Levels

Bitcoin is now testing a previous support level at around $103,000, which has now turned into resistance. A breakout above this level and a confirmation of support could indicate a bullish shift in the price structure. However, if Bitcoin fails to break above this level, the bearish trend could continue for the time being.

Further up, resistance can be found between $106,000 and $107,000. If the price manages to push past this zone, the next key resistance lies between $108,000 and $109,000, near the all-time high.

These levels will be crucial for confirming further upside momentum. On the downside, if Bitcoin pulls back, there is strong support around $97,000. This level could act as a safety net if the price drops.

Additionally, the liquidation heatmap shows a significant amount of liquidity above $107,000 – $108,000. A breakout above this zone could trigger a short squeeze, pushing the price even higher.

Disclaimer: The industry talking point section features insights by crypto industry players and is meant to provide a brief overview of recent noteworthy developments. The views expressed do not necessarily reflect those of CoinEdition and are not intended as financial advice.