Bitcoin Faces $85,000 Resistance Ahead of FOMC Meeting

Bitcoin is currently facing a critical resistance level at $85,000 as the market awaits the upcoming Federal Open Market Committee (FOMC) meeting. The cryptocurrency has struggled to secure a firm breakout above this threshold, leading to continued market speculation and volatility. Analysts note that the current market dynamics present a unique set of challenges, with traders closely monitoring both technical and fundamental indicators.

Bitcoin's price movement has been uncertain, with the cryptocurrency encountering persistent challenges in breaking the $85,000 resistance threshold. Despite multiple attempts, Bitcoin has failed to maintain a close above $84,600, indicating a bearish trend in the short term. The clash between buyers and sellers in the market hints at rising uncertainty, primarily driven by anticipation surrounding the FOMC meeting scheduled for March 18-19.

The forthcoming FOMC meeting is expected to introduce a new layer of complexity to Bitcoin’s price movements. With a 99% probability that interest rates will remain unchanged, traders are preparing for potential fluctuations in response to Federal Reserve Chair Jerome Powell’s commentary. Recent economic metrics, including a Consumer Price Index (CPI) of 2.8%, indicate that inflationary pressures remain above the Fed’s target. This cautious outlook is fueled by low unemployment rates and steady GDP growth, further discouraging immediate rate cuts.

Bitcoin’s ability to flip the critical $85,000 resistance into a supportive level is essential for targeting new price highs near $90,000. Analysts emphasize the importance of reclaiming the 200-day exponential moving average, which is pivotal for assessing the medium-term outlook. With recent trading below this moving average—a scenario not witnessed since August 2024—market participants are closely monitoring potential recovery patterns.

Positive momentum for Bitcoin could emerge from renewed demand for Bitcoin ETFs, as recent inflows mark the highest since February 4. Such activity not only reflects growing institutional interest but also reinforces the potential for bullish trends if Bitcoin can gain traction above key resistance levels. Conversely, continued pressure from the bears could establish new lows below $78,000, with urgent support resting at $74,000, the cryptocurrency’s previous all-time high from early 2024.

Traders are advised to keep a close eye on critical price points below $74,000, particularly in the range between $70,530 and $66,810, where significant daily order blocks exist. The implications of reaching $69,272 could be substantial, possibly erasing gains attributed to previous market movements closely aligned with past electoral events. Notably, analysts highlight that Bitcoin’s “worst-case” scenario may be shaped between $71,300 and $73,800, potentially setting a vital support zone across multiple timeframes.

As we approach pivotal announcements from the Federal Reserve, Bitcoin’s trajectory appears heavily influenced by both macroeconomic conditions and trader behavior. Maintaining close observation of resistance and support levels is critical in navigating the volatility expected in the coming days. Market analysts continue to emphasize that a reclaim of $86,250 is essential for affirming a bullish scenario, while others anticipate a possible retest near the $70,000 mark as a key area of interest for traders.