Bitcoin Price Consolidates Amid Gold Surge, FOMC Impact

Bitcoin has been experiencing a period of consolidation, with its price fluctuating within a narrow range. This price compression suggests a potential for significant price movements in the near future. The recent rise in gold prices, which have surged above $3000 per ounce, has had a notable impact on Bitcoin's price dynamics. The correlation between gold, Bitcoin, and the S&P 500 indicates a shift in investor sentiment towards traditional investment tools, which may be contributing to Bitcoin's consolidation.

In recent months, Bitcoin has shown short-term positive responses to events such as the Federal Open Market Committee (FOMC) meeting, which kept interest rates unchanged. However, these rallies have been short-lived, with bears quickly taking control and extracting profits. This pattern has raised concerns about the next price action for Bitcoin, as it has remained relatively stagnant throughout the first quarter of 2025, despite expert predictions of a strong bull run.

The recent surge in Bitcoin's price to $87,000 sparked optimism among market participants, who anticipated a further rise above $90,000. However, the weakening of bullish strength led to a bearish reversal, pulling the price back to around $84,400. Holding the daily candle between $84,000 and $85,000 is crucial for Bitcoin to avoid falling back to local lows. The current price dynamics suggest that more bearish actions may be on the horizon, despite expectations of a rebound to $90,000.

The weekly chart of Bitcoin indicates that the price is attempting to clear the crucial resistance at the 200-day weekly moving average (MA) of $84,634.23. If successful, the price may enter a pivotal resistance zone between $85,296 and $86,466. However, the Relative Strength Index (RSI) continues to form lower highs and lows, while the On-Balance Volume (OBV) follows the trend, suggesting a significant outflow of liquidity. This consistent drop in rally strength raises concerns about the possibility of a death cross in the long term, which could have a substantial impact on Bitcoin's price.

Given the close correlation between Bitcoin and the S&P 500, it is essential to monitor the broader economy, the stock market, and global monetary policies. The recent rise in gold prices and the shift in investor sentiment towards traditional investments may continue to influence Bitcoin's price dynamics in the coming months. As the market awaits the next significant price movement, the importance of staying focused on these macroeconomic factors cannot be overstated.