Bitcoin Hovers Near $100,000 Support Amid Fed Rate Decision

Bitcoin's price is currently at a critical juncture, trading at $104,781 and hovering just above its 200 EMA on the 4-hour chart at $104,861. The cryptocurrency is consolidating within a descending triangle pattern, with lower highs acting as resistance and a flat support zone around $103,343. This pattern typically indicates a bearish continuation unless a breakout occurs. The Relative Strength Index (RSI) is around 45, suggesting neutral momentum with no clear bullish divergence. Momentum has faded over the past two weeks, and price action remains weak near the triangle’s lower edge.

If Bitcoin fails to hold above $103,343, it could quickly drop toward the psychological support at $100,000. This level aligns with the lower bound of the descending triangle and may serve as the final defense before a larger correction. Should $100,000 fail, the next potential support zone is around $97,000–$95,000, opening the door to a possible retest of April breakout levels. On the other hand, a strong bounce from the 200 EMA or a breakout above the upper triangle trendline (~$107,000–$109,000) could invalidate the bearish setup. In that case, Bitcoin may push to retest $110,000 and aim for new highs above $112,000.

Bitcoin's price has been a focal point of market attention, with significant volatility observed in recent weeks. Prices have fluctuated between $94,000 and $97,200 within a single week, raising concerns about the sustainability of Bitcoin's price above the psychological support level of $100,000. On Wednesday, Bitcoin's price hovered around $105,000, following a 2% drop the previous day. Traders are now focusing on the US Federal Reserve's interest rate decision, which could significantly impact Bitcoin's price. Analysts have warned that a sustained decline below specific levels could lead to a deeper breakdown, potentially pushing the price towards the $100,000 mark.

Despite the recent dip, some analysts remain optimistic about Bitcoin's ability to hold above $100,000. They point to the building liquidity above $106,000 as a potential support level that could prevent a further decline. However, others are more cautious, noting that if Bitcoin fails to hold above $103,343, it could quickly drop towards the $100,000 support level. Geopolitical tensions and the ongoing tussle between political figures and influential personalities have also added to the uncertainty surrounding Bitcoin's price. Some analysts predict that Bitcoin could slump to $100,000 amid these tensions, further complicating the outlook for the cryptocurrency.

Looking ahead, the Bitcoin price this month suggests a likely trading range between $100,000 and $120,000, as it consolidates near its 200-day exponential moving average while holding onto a bullish long-term trend. However, the potential for a deeper breakdown remains a concern for many traders and analysts. In summary, Bitcoin's price outlook is uncertain, with analysts divided on whether it will hold above $100,000 or experience a deeper breakdown. The upcoming US Federal Reserve's interest rate decision and geopolitical tensions are among the key factors that could influence Bitcoin's price in the near term. Traders and investors will need to closely monitor these developments and adjust their strategies accordingly.