Bitcoin needs to exceed the $81,000 per week key level to avoid more negative side volatility ahead of next week’s Federal Open Market Committee (FOMC) meeting.
Bitcoin (BTC) prices have fallen more than 3% in the past week to trade above $83,748 at 9:33am, according to the Cointelegraph Markets Pro Data Show.
Bitcoin prices continue to risk significant downside volatility due to increased macroeconomic uncertainty regarding global trade tariffs, according to Ryan Lee, chief analyst at Bitget Research.
BTC/USD, 1 year chart. Source: Cointelegraph
Closing more than $81,000 for a week is key to avoiding more Bitcoin shortcomings, analysts added to Cointelegraph:
“The key level for monitoring weekly closings is in the $81,000 range, and keeping it above indicates resilience, but drops below $76,000 could lead to shorter term sales pressure.”
Analyst comments will come a few days ahead of the next FOMC meeting scheduled for March 19th. According to the latest estimates from CME Group’s FedWatch Tool, the market is currently priced at a 98% chance that the Fed will stabilize interest rates.
Source: CME Group’s FedWatch Tool
The results of the meeting could have a major impact on Bitcoin’s investor sentiment, Lee said.
“The market primarily expects the Fed to be stable, but the unexpected Hawkish signal could put pressure on Bitcoin and other risky assets.”
“Even wobble surprises, like rate cuts, may not be the immediate boost some people want as investors are still measuring macro uncertainty,” the analyst added.
Related: US Rep. Byron Donald introduces bills codifying Trump’s Bitcoin Reserve
Bitcoin closings above $85,000 may rekindle investors’ optimism for more benefits: Analysts
Other analysts are looking at the silver lining in Bitcoin’s stagnant price action.
Over $85,000 per week over $85,000 can boost investors’ trust and lead to the next breakout, according to Enmanuel Cardozo, a market analyst at Brickken Real World Asset Tokenization Platform.
A market analyst told Cointelegraph:
“Traders and investors alike are focusing on $80,000 in support and $85,000-$90,000 resistance.
Bitcoin’s short-term momentum could be limited by future economic releases, but the development of regulations on Trump’s Bitcoin reserve program could gradually bring market optimism and mass adoption over time, analysts added.
Related: Bitcoin’s Next Catalyst: 36T $36T US Debt Cap End of Suspension
Trump’s Bitcoin Reserve took a step closer to reality on March 14 after US Representative Byron Donald introduced a bill that would make Bitcoin Reserve a permanent fixture, preventing future administrations from dismantling it through executive action.
If the bill is passed, it ensures that strategic Bitcoin reserves and US digital asset stockpiles cannot be eliminated through executive action by future administrations.
The bill must pass at least 60 votes in the Senate and a majority in the House. The bill could be passed because Republicans make up a majority in the Senate, and in a generally crypto-friendly environment.
https://www.youtube.com/watch?v=av7xioy4zvc
Magazine: SCB Tips $500K BTC, Sec Delays Ether ETF Options, etc.: Hodler’s Digest, February 23rd – March 1st
