Bitcoin Price Holds Steady as Market Awaits FOMC Trigger

Bitcoin is trading within a narrow range as traders watch for clues from the Federal Reserve’s policy meeting. A surprise interest rate cut could be the spark that sends BTC soaring past resistance and toward a new all-time high.

BTC Price Stuck in Tight Range: What Comes Next?

Bitcoin (BTC) continues to move sideways between $116,000 and $123,000, showing very little volatility. This tight range suggests that traders are uncertain about the next big move.

On the daily chart, BTC is holding above $114,000—an important support level that aligns with the bottom of a long-term rising trend channel. As long as Bitcoin stays above this zone, the overall bullish trend remains intact.

A breakout above the $123,000 resistance could confirm a new upward phase. But if the $114K support level fails, a drop toward $111,000 may follow.

Short-Term Chart Shows Bullish Potential

On the 4-hour chart, Bitcoin is forming a bullish continuation flag, a common chart pattern during uptrends. This suggests that BTC is currently pausing before making its next move.

All eyes are on tonight’s FOMC meeting, where the Federal Reserve will announce its latest decision on interest rates. With increased political pressure, including from former President Trump urging aggressive cuts, there’s a growing chance of a surprise move.

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If the Fed lowers rates unexpectedly, it could trigger a breakout for Bitcoin—possibly pushing the price beyond the $123,000 resistance and into new high territory.

On-Chain Data Signals Healthy Market Cooling

Recent on-chain data shows that speculative activity in the Bitcoin futures market is slowing down. In past rallies, especially between the $70K to $90K range, high leverage and trading volume led to overheated conditions followed by corrections.

Now, however, things have shifted.

Despite BTC nearing $123,000, the volume bubble map shows cooling conditions. Speculative bubbles have faded, and the market appears to be stabilizing. The dominance of grey and green bubbles indicates lower leverage and healthier price action.

This kind of cooling off after a sharp rise is often a positive sign, suggesting that the market is being driven by real demand instead of risky speculation.

If this pattern holds, Bitcoin may be preparing for a strong bullish move supported by solid fundamentals.

Final Thoughts: Breakout Ahead or More Waiting?

Bitcoin’s current price action reflects caution. Traders are waiting for a clear signal—and that signal may come from the Federal Reserve.

If tonight’s FOMC decision includes a surprise interest rate cut, it could be the trigger that ends BTC’s consolidation and launches the next big rally. Otherwise, Bitcoin may continue to move sideways as it searches for a catalyst.

For now, the key levels to watch remain:

• Support at $114K
• Resistance at $123K

The market is calm, but a major move may be just around the corner.

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EightCap, your trusted Partner in CFDs, Cryptocurrencies and Stocks.