Story Highlights

• Bitcoin recently fell below $77,000 but recovered to $83,000 amid market uncertainty and liquidations.
• The FOMC is expected to keep interest rates steady at 4.25%-4.5%.
• Analysts believe that if rates remain unchanged, Bitcoin may surge toward its $95,000 resistance level.

Bitcoin has been experiencing significant price fluctuations, recently dropping below $77,000 before bouncing back to approximately $83,000. These movements are attributed to regulatory issues, economic uncertainty, and major market liquidations. However, attention is now focused on the upcoming Federal Open Market Committee (FOMC) meeting, which could greatly influence Bitcoin’s price this week.

What to Expect from the FED Meeting

Scheduled for March 19, the meeting is anticipated to shed light on the Federal Reserve’s position on interest rates for February. Current expectations indicate that the FED will maintain interest rates at 4.25% to 4.5%, similar to January.

FED Chair Jerome Powell and other officials have hinted at a cautious approach to rate changes, particularly in light of ongoing economic uncertainties. Key concerns involve potential inflation risks and the implications of President Donald Trump’s trade policies.

If the FED confirms a steady interest rate, it could suggest a stable economic outlook, potentially boosting investor confidence in riskier assets like Bitcoin.

Bitcoin’s Price Reaction: Bullish or Bearish?

Should the FED choose to keep rates unchanged, analysts expect a bullish wave could hit the market, propelling Bitcoin towards its next resistance level of $95,000.

CryptoQuant analyst Darkfost has pointed out that Bitcoin’s open interest has reached $33 billion, indicating significant leverage is at play. This suggests that investors are placing substantial bets on Bitcoin’s upcoming moves.

> 🔍 The $BTC market is deleveraging: A Natural Reset?
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> On January 17th, Bitcoin’s open interest peaked at over $33B, marking the highest leverage in the market ever witnessed.
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> Following the recent panic sparked by political instability linked to…

Conversely, crypto analyst Benjamin Cowen has cautioned that recent political uncertainties have triggered liquidations, resulting in short-term price declines.

If Bitcoin drops below its 2024 highs of around $70,000, it may replicate a prior cycle observed in 2017, where Bitcoin retested the previous year’s highs before experiencing further decline.