Bitcoin remains stable above $80,000 as traders anticipate the Federal Open Market Committee’s (FOMC) interest rate decision.
Bitcoin has been trading in the range of $82,000-$84,000 in the last few days but has not formed a clear breakout.
The market remains bearish as buyers fail to drive the price of BTC up. It has been observed from the historical prices that there is a possibility of a price movement up. According to some traders, BTC could return to the $78,000 range to consolidate before heading toward the latest highs.
Crypto analyst Michaël van de Poppe pointed out that BTC is in the process of creating a higher low pattern, which will allow a new attempt to break through higher resistance levels.
“We still have Monday to go, but this looks like we’re making a new higher low on Bitcoin before attacking the highs again.” Other traders claim that $85,400 to $87,100 levels are critical for the further upward movement in price.
Federal Reserve Decision and Bitcoin’s Next Move
The upcoming FOMC decision is expected to shape Bitcoin’s short-term trajectory. The Federal Reserve has indicated that it will not raise interest rates too much, although Powell remains a hawk. Although inflation rates are also subduing currently, Powell has indicated that he has not seen any need to cut interest rates.
The overall consensus of the market players is that the Fed will keep interest rates steady. However, if Powell speaks of future actions to reduce rate rates, the mood may turn in favor of risk, including Bitcoin, and asset prices will rise. It is believed that any indication that quantitative easing will continue, albeit on a smaller scale, can push the markets further.
Kyle Doops, a crypto technical analyst, predicted that Powell’s mentioning of the word ‘quantitative easing’ could spur quick market responses. However, market expectations are still high that Powell will maintain his rhetoric moderate and noncommittal.
Bitcoin Investor Behavior and What Will It Bring Forth?
Analyzing the on-chain data, there are signs of deleveraging, which is a process as a market’s excess leverage is unwound. These phases have invariably resulted in strong gains, thus providing value-buying opportunities to long-term investors.
According to CryptoQuant, the 3-6 month age band, which measures the duration of holding bitcoins, is on the rise. This shows that investors increase their accumulation of BTC, which minimizes its supply in exchanges. Similar patterns have been observed in other cycles with key accumulation phases, and such phases generally resulted in price bounce-backs.
The BTC market is undergoing deleveraging
“This chart highlights such reset phases by identifying moments when the 90-day open interest change turns negative. Historically, each past deleveraging like this has provided good short-to medium-term opportunities.” –@Darkfost_Cocpic.twitter.com/8VRH2oVaTD
— CryptoQuant.com (@cryptoquant_com) March 17, 2025
Also, based on Bitcoin’s historical price cycle and lows analysis of Bitcoin, it is possible to predict that the prices may rise to reach $126,000 as early as June. Meanwhile, trader Captain Faibik predicted that BTC may surge past $109,000 in mid-April if certain liquidity levels above $85,000 are crossed.
$BTC Falling Wedge on the Daily TF is still in play.
I think Bitcoin will hit 78k first to grab liquidity before an Upside Breakout.
Once the breakout occurs, Bitcoin is likely to reach 109k in the coming weeks (Possibly by mid-April)
Be Patient.. #Crypto #Bitcoin #BTCpic.twitter.com/2TV7TFNc8w
— Captain Faibik (@CryptoFaibik) March 17, 2025