Bitcoin Holds $118K: 21,000 BTC Buy & Fed Decision May Spark Breakout
Bitcoin (BTC) has been stuck in a tight range between $116,000 and $120,000 for over two weeks since its all-time high of $123,218...
Quick overview
- Bitcoin (BTC) has been trading in a narrow range between $116,000 and $120,000 since reaching an all-time high of $123,218 on July 14.
- Institutional accumulation is on the rise, with Strategy Inc. purchasing 21,021 BTC, indicating long-term confidence in the asset.
- The upcoming Fed interest rate decision could significantly impact market sentiment, with potential for volatility based on comments from Chair Jerome Powell.
- Regulatory advancements, including SEC approval for in-kind creations for Bitcoin and Ethereum ETPs, may enhance the attractiveness of crypto investments.
Bitcoin (BTC) has been stuck in a tight range between $116,000 and $120,000 for over two weeks since its all-time high of $123,218 on July 14. Despite the sideways action, the overall market sentiment is still cautiously optimistic. At the time of writing, BTC is at $118,000 and investors are waiting for macro signals.
The upcoming Fed interest rate decision on Wednesday could be the catalyst. While the market expects the Fed to keep rates steady, any comments from Chair Jerome Powell about future policy paths could shake up both traditional and digital markets.
Recent technical indicators show decreasing bullish momentum:
- RSI: 58 (above neutral but trending down)
- MACD: Bearish crossover last week
- 50-day EMA support: $112,736
If BTC closes below $116,000, a deeper pullback to the 50-day EMA is likely. Above $120,000 and we could see a retest of $123,218.
Strategy Buys 21,021 BTC Amid Inflows
Despite the sideways action, institutional accumulation is increasing. On Tuesday, Strategy Inc. bought 21,021 BTC, bringing its total to 628,791 BTC. This big buy is a sign of long term confidence in the asset.
Also, US spot Bitcoin ETFs have had four days of inflows, with $79.98 million added on Tuesday alone, according to SoSoValue. The steady institutional demand means the current price is being seen as a buying opportunity not a top.
Key Institutional Highlights:
- Strategy’s BTC holdings: 628,791 BTC
- Four days of inflows
- Galaxy’s sell-off had minimal impact
This should cushion Bitcoin from any sharp corrections if macro headwinds are mild.
SEC and White House Shape Crypto Policy
Regulatory clarity is also moving forward. On Tuesday, the US SEC approved in-kind creations and redemptions for spot Bitcoin and Ethereum ETPs. Previously only cash-only, this change brings crypto ETPs in line with traditional commodity ETFs like gold and oil—potentially making them more efficient and attractive.We will see more clarity on Wednesday when the White House releases its first virtual asset report. This report will outline innovation, compliance and investor protection guidelines for the future of crypto.
As institutional demand and infrastructure is building, Bitcoin may be about to break out—this week.
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