Key Points
- BTC fell 2.4% in the past hour and is currently trading below $113,000.
- The Federal Reserve is expected to cut interest rates by at least 25 basis points today.
FOMC Meeting Dominates Headlines
Bitcoin, Ethereum (ETH), and Ripple (XRP) are showing bearish pressure as they struggle to break key resistance levels. Bitcoin has slipped below $113,000 and is currently trading around $112,950.
This decline came after Bitcoin was rejected at the 78.6% Fibonacci retracement level. The recent bearish move occurred in the hours leading up to the Federal Open Market Committee (FOMC) meeting.
Markets widely expect the Fed to cut rates by at least 25 basis points, a move that could lift Bitcoin and other major cryptocurrencies in the short term. The anticipated rate cut remains despite a partial U.S. government shutdown that has delayed several weeks of economic data releases.
If Bullish Momentum Returns, Bitcoin Could Reach $120,000
The BTC/USD 4-hour chart looks bearish but conditions could change if bullish momentum returns. Bitcoin struggled over the past 24 hours after being rejected near the 78.6% Fibonacci retracement at $115,137. It is trading below the 50-period Exponential Moving Average (EMA) at about $112,950.
The 4-hour Relative Strength Index (RSI) sits near 60, indicating some bullish bias among traders. Additionally, the Moving Average Convergence Divergence (MACD) on the 4-hour chart has shown a bullish crossover, which supports the case for potential upside.
If Bitcoin holds above $112,000 and closes decisively above $115,137, that could extend the rally toward the key psychological level of $120,000.
Conversely, failure to break and close above the $115,137 resistance could sap momentum and push Bitcoin down toward the 61.8% Fibonacci retracement near $106,453.