Bitcoin’s price failed to break above the $85,000 resistance level again, leading to uncertainty in the market. Since March 12, BTC price highs have ranged between $81,179.99 and $83,438 without surpassing $84,600. Investors remain cautious as the Federal Open Market Committee (FOMC) meeting approaches, increasing volatility concerns.
Bitcoin Struggles Below Key Resistance Level
Market uncertainty has pushed Bitcoin into a crucial area in its lower time frame. A successful recovery of $85,000 will enable Bitcoin to pursue new targets, reaching $90,000. A landmark resistance at $85,000 continues to prevent Bitcoin from rising and maintains short-term price instability.
The price of Bitcoin stayed underneath its 200-day exponential moving average starting from March 9 until August 2024. For market bullishness to resume, the price needs to surpass this threshold. The price stands at risk of moving downward when sellers succeed in driving it past support levels because of the lack of a breakthrough.
When the market rebounded on March 17, the Bitcoin ETFs recorded a substantial capital influx of $274 million. Essential institutional investor demand has returned because the volume is at the highest level since Feb. 4. Additional increases in ETF inflows would provide Bitcoin with the structural support it needs to rise above current price points.
Fed Meeting and Interest Rate Decision Impact
A significant market response is likely during the FOMC meeting scheduled for March 18-19. Bitcoin faces a major market shift following the 2 p.m. ET interest rate announcement, which will occur on March 19. Stockholders predict cost fluctuations based on their responses to Federal Reserve decisions.
The CME FedWatch tool indicates that another increase in interest rates is near-certain at 99% during the upcoming Fed meeting period. Market participants have foreseen no adjustments in Federal Reserve policies, thus reducing the potential negative impact on Bitcoin’s market value. Future monetary policy decisions by the Fed will act as a dominant determinant for market mood and response.
All traders maintain their attention on Fed Chair Jerome Powell’s speech because he will share details about future modifications to monetary policy. Economic indicators have strengthened so much that experts believe Powell will follow a strict monetary policy strategy. The current monetary stability persists because unemployment stays low yet the GDP grows steadily and inflation passes the 2% threshold, thus lowering the chances that the central bank will cut interest rates soon.
Potential Bitcoin Price Scenarios
A successful $85,000 recovery by Bitcoin would likely propel it toward $90,000 during the upcoming weeks. Prices above the 200-day EMA will validate bullish force and increase purchasing interest. The lack of this breakout presents hazards for Bitcoin to experience additional bearish price movements.
The lack of resistance breakage creates higher chances for Bitcoin to decline and evaluate lower support levels. A price fall under $78,000 would potentially result in another visit to the $74,000 all-time high from the beginning of 2024. Significant support for Bitcoin exists between the price points of $70,530 and $66,810, which correspond to historically significant valuation zones.
Public analysts make diverse predictions about potential market developments. SuperBitcoinBro outlines the most negative scenario, which includes $71,300 and $73,800 as support levels. Nebraskangooner states that Bitcoin needs to cross the $86,250 price level to demonstrate short-term bullishness.
FAQs
Why is Bitcoin struggling to break $85,000?
Bitcoin faces strong resistance at $85,000 due to market uncertainty and weak bullish momentum. Recent price action shows repeated failures to close above this level. Without a significant catalyst, it remains difficult for Bitcoin to push higher.
How will the FOMC meeting impact Bitcoin?
The FOMC meeting on March 18-19 will influence Bitcoin’s price based on interest rate decisions and future monetary policy. A hawkish stance could create downward pressure, while dovish signals might support a price rebound. Market volatility is expected leading up to and after the announcement.
What are the key Bitcoin support levels?
If Bitcoin fails to hold above $78,000, the next major support lies at $74,000. Below this level, further support exists between $70,530 and $66,810. Traders will watch these areas closely for potential buying opportunities.
Can Bitcoin still reach $90,000?
Bitcoin must break above $85,000 and reclaim the 200-day EMA to target $90,000. Strong ETF inflows and favorable macroeconomic conditions could support this move. However, failure to break resistance increases the risk of a downward trend.
How are Bitcoin ETFs impacting price movements?
Bitcoin ETFs saw a $274 million inflow on March 17, the largest since February 4. Increased institutional demand through ETFs can provide bullish momentum. If inflows continue, Bitcoin may gain the support needed to move higher.
Glossary
Resistance Level – A price point where selling pressure prevents further upward movement.
Support Level – A price zone where buying interest prevents further declines.
Exponential Moving Average (EMA) – A technical indicator that smooths price data to identify trends.
Hawkish – A monetary policy stance favoring higher interest rates to control inflation.
Dovish – A policy stance supporting lower interest rates to stimulate economic growth.
Bitcoin ETFs – Exchange-traded funds that allow institutional investors to gain exposure to Bitcoin.
Reference
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