Bitcoin’s (BTC) initial reaction to the FOMC meeting and the decision not to cut the rate was a short-term selloff. The price dropped to $101,365 but recovered 4.01% and currently trades at No data found for bitcoin on 58 minutes ago. This bounce shows crypto investors are optimistic after the most highly anticipated macroeconomic event is behind them. If this outlook continues, will Bitcoin price revisit the $109K all-time high next?
Why is Bitcoin Price Rallying After FOMC?
Based on the consensus, the federal funds rate remained at 4.25% to 4.50%. As with every other FOMC and interest rate decision meeting, Bitcoin price reacted with a spike in volatility. BTC’s price dropped to $101,365, reacting to Jerome Powell’s decision not to cut interest rates. Soon after, BTC bounced 4.01% and currently trades around No data found for bitcoin on 58 minutes ago. This bounce aligns with crypto investors’ post-FOMC expectations, which explains the bullish sentiment seen across the crypto markets.
Another reason for the bullish outlook of BTC and the broader crypto market is Senator Cynthia Lummis’ tweet regarding the Strategic Bitcoin Reserve. Lummis noted,
“One of the first orders of business will be to hold public hearings on the Strategic Bitcoin Reserve.”
TheFlowHorse, a popular crypto analyst, also added his take on the FOMC. The expert noted that Powell started “hawkish” but came back “with a few opposing comments.” He added,
“BTC seems like it either needs to be much higher or much lower (reasonably) to offer any meaningful opportunity.”
Key BTC Levels to Watch
From a technical standpoint, the two key levels that investors need to watch for potential reversals are $105.4K and $107.2K.
Over the past 12 days, 70% of the volume was traded between $101.4K and $105.4K. The FOMC-induced volatility caused Bitcoin’s price to bounce off the range low, leading to a 4.01% bounce. It currently trades around the range high of $105.4K. If bears fail to take control here, BTC could continue its bounce and revisit $107.2K. A sweep of this equal high level could lead to short-seller liquidation and a potential reversal. However, if the bullish momentum is strong and these two hurdles are overcome, Bitcoin price prediction hints an all-time high retest of $109K is next.
BTC/USDT 1-hour chart
On the other hand, if there’s a reversal at $107K or $105K, then the key support levels include $104.4K, $102.2K, and $101.5K. In case Bitcoin price breaks below the 12-day composite’s range low of $101.5K, then the 2025 VWAP at $99.9K and the 98.4K are pivotal support levels.
Many popular analysts are expecting a much deeper correction. Adam, another popular analyst, noted,
“The only level I am interested in buying at the moment would be flush into the 95k-ish area with indicators supporting the longs.”
A popular trader, RektProof, marked out the four-hour demand zone, extending from $95.3K to $90.9,K and added,
“Will watch for any moves below.”
What’s Next for Bitcoin & Crypto Markets?
BTC held above the $100K psychological level for the past few weeks and is showing strength after the FOMC meeting. As long as this bullish outlook remains, the crypto market will likely continue its recovery while BTC revisits all-time high at $109K.
TheFlowHorse analyst echoed a similar outlook, noting that there are opportunities in “smashed alts” with “90% draw downs from all time highs.”
“If scam pumps are going to occur, I would expect it with these first.”
Due to this short-term BTC bounce, altcoins are also recovering explosively. For example, Litecoin’s price has risen 15%, and Solana’s price has risen nearly 9% in the past 10 hours.
Overall, investors can expect this bullish outlook to sustain as long as BTC does not reverse from $105.4K.
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