Bitcoin’s price fluctuates around $95,000 to $96,000 as the FOMC interest rate decision looms. Expectations are that rates will stay at 4.5%, but uncertainty remains regarding inflation and the economy. A technical analysis shows Bitcoin has formed bullish patterns, and a breakout past $100,000 could lead to further gains.
The impending decision from the Federal Open Market Committee (FOMC) on interest rates is capturing attention, as Bitcoin’s price remains in flux. Currently, Bitcoin (BTC) is hovering between $95,000 and $96,000, marking a healthy uptick of around 30% since April’s lowest point. Recent remarks from President Donald Trump highlighted ongoing trade discussions between the US and other nations, particularly China. However, China’s Commerce Ministry pointed out that existing tariffs hinder these talks.
The Wall Street Journal reported that China is mulling over a possible fentanyl deal, given Trump’s frequent references to drug-related trafficking as a basis for tariffs. As the FOMC’s interest rate decision approaches, markets are eagerly anticipating developments that could impact Bitcoin prices significantly. Analysts predict the U.S. Federal Reserve will keep rates steady at 4.5%, although comments surrounding inflation may sway sentiment, with expectations that prices could gradually increase due to the ongoing tariffs.
Concerns are rising that the US economy is inching closer to recession territory, particularly after a recent report noted a 0.3% contraction in GDP for the first quarter, the weakest showing since 2022. This economic backdrop may lead FOMC officials to consider a modest cut of 0.25% at the upcoming June meeting, a possibility that traders on Polymarket appear to be banking on. If this happens, it could serve as a catalyst for Bitcoin price surges.
Looking at Bitcoin’s technical setup, the daily chart reveals a substantial recovery, with BTC soaring from a low of $74,330 to nearly touching $97,927 recently. The price has successfully breached a crucial resistance mark at $88,655, which was seen as the neckline of a double-bottom pattern at $76,665.
A promising mini golden cross has formed as the 50-day and 100-day moving averages intersect, while prominent oscillators, including the Relative Strength Index and MACD, indicate bullish momentum. With this, analysts believe that Bitcoin may soon target the $100,000 resistance threshold. Should it manage to break through, there’s potential for further gains that could even reach Bitcoin’s all-time high near $109,300, aligning with predictive analyses.
