Bitcoin Holds $101K Ground as Fed Decision, Asian Markets Shape Next Move

(%)
MARKETS TREND

As markets gear for the Federal Open Market Committee (FOMC) meeting, Bitcoin (BTC) keeps proving resiliency above the psychological $100,000 level.

Bitcoin Holds $101K Ground as Fed Decision, Asian Markets Shape Next Move
Bitcoin price analysis

BTC/USD has developed support around $101,000 after momentarily falling below six figures; traders are eagerly tracking Federal Reserve Chair Jerome Powell’s forthcoming remarks for directional indications.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewFCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTCUSD 100Visit Broker
🥈Read ReviewFSCA, FSC, ASIC, CySEC, DFSAUSD 5Visit Broker
🥉Read ReviewCySEC, MISA, FSCAUSD 25Visit Broker
4Read ReviewASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBUSD 200Visit Broker
5Read ReviewASIC, FCA, CySEC, SCBUSD 100Visit Broker
6Read ReviewFCA, FSCA, FSC, CMAUSD 200Visit Broker
7Read ReviewBVI FSCUSD 1Visit Broker
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker

FOMC Impact on Bitcoin and Crypto Market

Using CME’s FedWatch tool, market data shows a 99.5% likelihood the Federal Reserve will keep present interest rates between 4.25% and 4.50%. Still, market players pay closer attention to the tone and forward direction Chair Powell’s remarks offer.

The political terrain adds still another level of difficulty since former President Trump openly supports rate cuts. The Federal Reserve keeps its independence, hence any sign of a dovish change could inspire fresh purchasing activity in the crypto market.

Asian Market Influence and Lunar New Year Effect

With Eastern trading hours currently accounting for 46.45% of overall volume, up from 43.85% in past weeks, trading volumes suggest an interesting turn towards Asian markets. This pattern aligns with the Lunar New Year season, which has historically been favorable for Bitcoin; advances in 11 out of the past 12 years with an average return of 21.1% over the celebration period.

Institutional Interest and Market Structure

The recent legalization of spot Bitcoin ETFs still affects market structure since institutional involvement offers extra support at relevant levels. Still, the rise of some speculative tokens—especially those with Year of the Snake themes—indicates retail speculation still has a major influence in the market.

BTC/USD Technical Analysis: Key Levels to Watch

BTC/USD

 

Bitcoin’s price action has created a coiling pattern near $103,000, indicating accumulation at these levels. Key support has developed at $97,000; analysts find significant fair value gaps around $94,000. A breach below these levels might set off a retest of $88,900, therefore indicating a change in market mood.

Positively, the $107,000 level is a noteworthy resistance zone. With estimates predicting possible advances above $110,000 if supported by FOMC rhetoric, a significant breach above this level might set Bitcoin into price discovery mode.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments