The FOMC Looms as Bitcoin Tests $116K Supply Wall and $107K Support

Bitcoin Nears $116K Supply Wall as Liquidity Stacks, $107K Support Could Be at Risk Ahead of FOMC

Bitcoin is approaching a significant $116,000 supply wall, according to recent on-chain data and price action analysis. This level marks a concentration of dormant BTC held by long-term investors and large holders, often referred to as "whales." Market observers have noted that if the price were to break above this threshold, it could trigger increased selling pressure as these accumulated supplies begin to circulate.

At the same time, the $107,000 level has been identified as a key support area. Should Bitcoin fail to maintain its current trajectory and retreat toward this level, it could signal a reversal in bullish momentum. Analysts suggest that the proximity of this support level to recent price action means any drop below $107,000 may prompt further volatility or even a broader correction.

The upcoming Federal Open Market Committee (FOMC) meeting on September 14, 2025, is expected to play a pivotal role in determining the next direction for Bitcoin. Market participants are closely watching for any indication of monetary policy changes, particularly related to interest rate adjustments, which have historically influenced risk-on sentiment in the crypto markets. With Bitcoin currently trading near critical levels, any significant macroeconomic news from the FOMC could amplify price swings.

Liquidity has also become a key factor in Bitcoin’s price behavior. Recent activity has shown a buildup of liquidity around the $116,000 mark, as traders and institutional participants prepare for potential price action in that range. This liquidity stack suggests that the market may be testing this level before a more decisive breakout or breakdown occurs. Additionally, increased on-chain activity, including large wallet transfers and dormant address reactivations, indicates that major holders are beginning to interact with the network more frequently, which could impact short-term price volatility.

Looking at broader market participation, global Bitcoin adoption continues to grow, with estimates suggesting over 562 million users globally as of 2024. Chain data reveals over 5.5 million unique BTC addresses, with a significant portion holding between 0.1 and 1 BTC—likely indicative of retail investors. However, the concentration of large holdings, particularly those with 10 to 100 BTC, points to a mix of early adopters and institutional investors. These large holders are often considered key influencers in price movements due to the volume they can control.

As the market approaches a pivotal juncture, traders and investors are closely monitoring both technical indicators and macroeconomic developments. While $116,000 represents a critical supply zone, the $107,000 support level serves as a potential floor should downward pressure build. The coming days will be critical in determining whether Bitcoin can overcome the supply wall or face a retest of its lower bounds ahead of the FOMC decision.