Bitcoin (BTC) Wobbles After FOMC: Will Selling Pressure Increase?
Bitcoin's price has been consolidating between $117,261 and $120,000 for the past few days. Recent market dynamics, influenced by the Federal Open Market Committee (FOMC) meeting on Wednesday, triggered a temporary price decrease.
Currently, Bitcoin is trading at $118,419, showing a slight recovery from a dip to $115,700. Despite this rebound, Bitcoin's trajectory remains uncertain due to potential sell-side pressure.
Bitcoin Showing Signs of Potential Decline
The Relative Unrealized Profit (RUP) recently exceeded the +2σ band, a level often seen during market euphoria. Historically, this situation has preceded market tops, indicating latent selling pressure that could push prices lower.
The current RUP suggests a pullback might be likely soon, potentially driving Bitcoin's price out of its consolidation range. Historical patterns indicate that increased selling could lead to further downward pressure.
The Squeeze Momentum Indicator (SMI) signals that Bitcoin is entering a consolidation phase. Historically, these periods of limited price movement have preceded significant price moves once the squeeze is released.
As the squeeze builds, Bitcoin's price is poised for a sharp move. If the broader market remains bearish, Bitcoin could experience a significant decline, especially if the SMI confirms this negative trend in the coming days.
BTC Price Needs To Jump
Bitcoin is currently trading at $118,410, recovering from a fall to $115,700 following the FOMC report release on Wednesday. The market's reaction to the Federal Reserve's decision to maintain interest rates has spurred this recovery, but underlying market conditions still present risks.
Bitcoin's price is vulnerable to further declines if investors begin taking profits, potentially pushing the cryptocurrency below the $117,261 support level. A break below this support could lead Bitcoin's price to $115,000 or even lower.
This bearish outlook would be invalidated if Bitcoin holds above $120,000 and reclaims $122,000 as support. A surge above these levels would likely provide the necessary momentum to push Bitcoin toward new highs. Until then, Bitcoin's price remains susceptible to fluctuations and market pressures.