Bitcoin Trades Sideways Amid Fed Uncertainty Inflation Concerns

Bitcoin has been trading in a narrow range, hovering around the $104,000 mark, with the daily chart indicating a consolidation phase. This sideways movement is not unique to Bitcoin; the broader cryptocurrency market, including Ethereum, XRP, and Dogecoin, has also been relatively flat. The cautious sentiment in the market is attributed to various factors, including rising inflation concerns, geopolitical tensions, and the Federal Reserve's wait-and-see posture on interest rates.

Analysts suggest that the Fed's current stance may lead to months of sideways trading, providing an opportunity for Bitcoin to potentially shine. Despite significant inflows into Bitcoin ETFs, the cryptocurrency has remained stuck between $103,000 and $105,500. This lack of momentum has kept major crypto stocks under pressure, with recent liquidations of leveraged positions adding to the downward pressure.

The market's focus has shifted to regulatory developments, with recent news indicating a potential boost for cryptocurrencies. However, the overall sentiment remains cautious, and the market is awaiting clearer signals from the Fed and other macroeconomic indicators. The current trading range for Bitcoin is between $103,000 and $105,500, with the next potential breakout target at $107,000. However, according to the analyst's forecast, there is also a possibility of a drop to $98,000. The market's direction will likely be influenced by upcoming economic data and geopolitical events.