Key Highlights
- BTC targets $120,000 resistance ahead of FOMC meeting.
- The $116,000 resistance remains a hurdle for traders despite positive price action.
BTC Still Below Key Resistance at $116,000
The cryptocurrency market began the week on a downward trend but is now recovering, with Bitcoin and other major cryptocurrencies seeing gains. Bitcoin dipped to $114,000 on Monday, while altcoins experienced more significant losses.
However, BTC has slightly rebounded, trading above $115,000, with the $116,000 resistance still looming. This price stagnation occurs just before a crucial Federal Open Market Committee (FOMC) meeting scheduled for tomorrow.
Analysts are anticipating a rate cut of at least 25 basis points, with some predicting a reduction of 50 basis points. The likelihood of this decrease has surged to over 90%, while the CME Fed Monitor shows a 95% probability. A Federal Reserve rate cut is expected to benefit cryptocurrencies, positioning Bitcoin for a potential return to its all-time high.
Bitcoin Eyes $120,000 Ahead of FOMC Meeting
The BTC/USD four-hour chart exhibits a bullish tone and remains effective despite Monday’s decline. Technical indicators have improved in recent hours, with all eyes now on the anticipated rate cut from the Fed tomorrow.
The RSI at 55 indicates that buyers are still in control, with MACD lines also in bullish territory. If the resistance at $116,000 is surpassed, BTC could quickly approach the psychological level of $120,000 in the coming hours or days. A prolonged bullish run could position it toward its all-time high above $125,000.
However, failure to break through the $116,000 resistance may lead to a further downward correction for BTC. This could see the cryptocurrency retest the support level at $113,479. This support level is likely to hold, as the next support lies around $110,000.
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