Key points
- BTC fell about 1% in the last 24 hours and is now trading below $113k.
- The Fed is expected to cut interest rates by at least 25 basis points today.
FOMC meeting dominates the headlines
Bitcoin, Ethereum (ETH) and Ripple (XRP) are showing bearish tendencies as they struggle to break key resistance levels. Bitcoin slipped below $113k and is currently trading around $112,950 per coin.
This price action follows a rejection at the 78.6% Fibonacci retracement level. The recent downside movement comes ahead of the FOMC meeting scheduled in a few hours.
The Federal Reserve is widely expected to cut interest rates by at least 25 basis points, a move that could lift Bitcoin and other leading cryptocurrencies in the near term. That potential easing is forecast despite the ongoing U.S. government shutdown, which has delayed some financial data releases over the past three weeks.
Bitcoin could reach $120k if the bullish trend resumes
The 4-hour BTC/USD chart shows bearish momentum after Bitcoin underperformed over the last 24 hours. The decline followed a retest and rejection at the 78.6% Fibonacci level near $115,137 earlier this week. Bitcoin is down about 1% in the last day and is trading below the 50-period exponential moving average (EMA) at roughly $112,950.
The relative strength index (RSI) on the 4-hour timeframe hovers near 60, indicating an underlying bullish bias among traders. Additionally, the moving average convergence divergence (MACD) produced a bullish crossover on Sunday, which supports a potential upward scenario.
If Bitcoin holds above $112k and closes its daily candle above $115,137, it could extend its rally toward the key psychological level of $120,000.
Conversely, failure to close above the $115,137 resistance could cause Bitcoin to lose recent momentum and drop toward the 61.8% Fibonacci retracement level at about $106,453.