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Bitcoin (BTC) has surged nearly 4% in the past 24 hours amid the ongoing volatility. As the price retests the $85,000 resistance, some analysts suggest a jump to $90,000 could be around the corner.
On Wednesday, Bitcoin broke above the $85,000 resistance after surging over 5% from yesterdays lows. The flagship crypto has been unable to reclaim the $85,000-$86,000 zone throughout the last 10 days, struggling to hold the $84,000 support during this period.
Nonetheless, BTC climbed over the last 24 hours ahead of Todays Federal Open Market Committee (FOMC) meeting. As some market watchers pointed out, the expectations of Federal Reserve Chair Jerome Powells statement could make or break the recent reclaim of key support levels.
Analyst CRG explained, The rate change (or lack thereof) at FOMC is usually not important (unless surprise change) – as it’s baked in. It’s the forward guidance, tonality, etc., that’s important. New info surrounding the end of QT/dot plot revisions important to watch today.
The Federal Reserve announced its interest rate decision, setting the upper bound at 4.50%. As Wu Blockchain reported, the decision was in line with the expected rate and unchanged from the previous one.
Meanwhile, The dot plot indicates an expected 50 basis point rate cut in 2025. Additionally, starting in April, the Fed will slow the pace of balance sheet reduction, lowering the monthly Treasury redemption cap from $25 billion to $5 billion while maintaining the cap for agency debt and MBS at $35 billion.
Daan Crypto Trades noted that BTCs price could get quite interesting with the FOMC volatility. The news could send the flagship crypto to reclaim the key $85,000 barrier or retrace to the range lows.
According to the trader, Bitcoins liquidation heatmap showed a few big clusters on both sides of the weekly range. As a result, the $80,000-$81,000 and $85,000-$86,000 price ranges are two key zones to watch amid the ongoing volatility.
The Federal Reserves report propelled Bitcoins price to a 10-day high of $85,880, registering a 3.8% surge in the daily timeframe. Daan warned investors that the current $84,000-$85,000 range is a key level to overcome, as BTC has been unable to break back above the Daily 200MA/EMA cluster.
Reclaiming this zone could send Bitcoin back to the $90,000 resistance and reclaim its post-election breakout price range. On the contrary, a rejection could see BTC hit new lows, risking a fall to the $73,500 mark.
Analyst Rekt Capital noted a decline in seller volume over the last few days, which has allowed buyers to step in. According to the analyst, Buyers need to showcase above-average volume for there to be more conviction in this move.
Additionally, he highlighted that Bitcoins Daily Relative Strength Index (RSI) has turned into a resistance level as it has been in a downtrend since November 2024. To him, this level is worth watching in the future since an RSI Downtrend break would likely precede a trend reversal to the upside in price.
As of this writing, Bitcoin trades at $85,132, a 4.9% increase in the past week.