Bitcoin Drops Below $85,000 Amid FOMC Meeting Anticipation

Bitcoin's price has recently fallen below the $85,000 mark, with Binance Market Data reporting a price of approximately $84,857.50. This decline follows a narrow 1.56% increase over the past 24 hours. Similarly, the OKX market reported that Bitcoin had fallen below $85,000, with the current price hovering around $84,927.00 per coin. This price movement has sparked concerns among analysts about the potential for further declines.

The price of Bitcoin has been in a state of flux, with bulls and bears engaged in a tug-of-war. The cryptocurrency has been unable to close above $84,600 since March 12, despite forming daily highs between $84,000 and $85,200. This uncertainty is exacerbated by the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for March 18-19. The market is closely watching for any indications from the Federal Reserve, particularly the speech by Jerome Powell, the US Fed chair. The current economic indicators, such as the Consumer Price Index (CPI) and unemployment data, suggest a hawkish stance from Powell, which could influence Bitcoin's price movements.

Analysts are divided on whether Bitcoin has found its bottom. Arthur Hayes suggested that Bitcoin may have bottomed at $77,000, but this view is not universally shared. The market remains cautious, with key support levels below $85,000 and significant resistance at $85,000. For Bitcoin to target higher highs at $90,000, it must first flip the $85,000 resistance level into support and regain its position above the 200-day exponential moving average. However, the bears are attempting to keep the $85,000 resistance in place, increasing the likelihood of new lows under $78,000.

The immediate target below the previous range lows lies at $74,000, which was the previous all-time high from early 2024. Below this level, the next key area of interest remains between $70,530 and $66,810, with a daily order block. Reaching $69,272 would retest the US election day price, erasing all of the “Trump pump” gains. Analysts have highlighted potential support levels at $71,300 and $73,800, which could act as support in various timeframes.

The upcoming FOMC meeting is seen as a wildcard, with the potential to influence Bitcoin's price significantly. The market is focused on Powell's speech, as his stance could provide clarity on the future direction of interest rates and quantitative tightening. The current economic data suggests that the Fed is unlikely to change interest rates, but the market is also watching for any hints of a rate cut in the near future. The outcome of the FOMC meeting could determine whether Bitcoin continues its downward trend or finds support and begins a recovery.