Bitcoin Price Stalls at $118,200 as FOMC Looms – Will $120,000 Resistance Break or Crash Below $112,000?
Bitcoin’s price is hovering near $118,200 as traders brace for the Federal Open Market Committee (FOMC) meeting. With a 97.5% chance of rates holding steady, all eyes are on key Bitcoin resistance and support levels that could dictate the next major move.
Bitcoin Price Stuck in Tight Range Ahead of FOMC Decision
BTC has been trading between $112,000 and $120,000 as market participants await clarity from the Fed. Here’s what analysts are watching:
- Resistance at $120,000 – A breakout could propel Bitcoin toward $141,000
- Support at $112,000 – A breakdown might trigger a drop to $105,400
- Psychological level at $93,000 – The yearly open price acts as major support
Why the FOMC Decision Matters for Bitcoin
While the rate decision itself appears priced in, Fed Chair Jerome Powell’s comments could move markets:
| Scenario | Potential Bitcoin Impact |
|---|---|
| Dovish tone | Bullish momentum toward $120,000+ |
| Hawkish surprise | Profit-taking below $112,000 |
| Neutral stance | Continued rangebound trading |
Key Bitcoin Support and Resistance Levels to Watch
Technical analysts highlight these crucial price zones:
- $120,000 resistance – Aligns with 2 standard deviations above STH realized price
- $112,000 support – Recent swing low and liquidity zone
- $105,400 – Short-term holder cost basis
- $93,000 – Yearly open and major psychological level
Market Positioning Before the FOMC Meeting
Traders are showing cautious optimism with these factors in play:
- Liquidity clusters between $119,800-$121,000 may cap upside
- Fear-driven sell-offs could create buying opportunities
- August historically shows potential for parabolic moves
Bitcoin Price Prediction: Breakout or Breakdown?
The coming days will test Bitcoin’s resilience. A decisive move above $120,000 could attract institutional buyers, while failure to hold $112,000 may trigger liquidations. All eyes remain on Powell’s speech and Friday’s jobs report for clearer direction.
FAQs
Q: What time is the FOMC decision?
A: The rate decision comes at 2:00 PM ET, followed by Powell’s press conference at 2:30 PM ET.
Q: Why is $120,000 important for Bitcoin?
A: It represents a key technical resistance level and psychological barrier that could trigger new all-time highs if broken.
Q: What happens if Bitcoin breaks $112,000 support?
A: Analysts see potential downside to $105,400, with $93,000 as the next major support level.
Q: How reliable are the 97.5% rate-hold odds?
A: While the market expects no change, surprises are possible and the Fed’s language often matters more than the decision itself.
