Bitcoin Holds Steady Ahead of FOMC Meeting, Eyes $94,600

Bitcoin (BTC) has maintained a stable price trajectory ahead of the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. The market is anticipating no significant changes in interest rates, which could influence Bitcoin's price movement. The current stability suggests that Bitcoin may continue its sideways trend unless there are unexpected developments from the FOMC meeting.

Market expectations are aligned with the CME FedWatch Tool, which indicates a 99% certainty that no rate cuts will be implemented. This outcome, while potentially disappointing for those advocating for a weaker dollar, aligns with the Federal Reserve's current stance on maintaining stable interest rates. The stability in the U.S. stock market, which has shown resilience, further supports the notion that the FOMC meeting may not bring about drastic changes.

Bitcoin's price stability is also reflected in its technical indicators. An inverse head and shoulders pattern is forming, suggesting a potential bullish reversal. If this pattern holds, the price could rise significantly, potentially reaching around $94,600. This level is just above the last swing high and represents a major resistance point. The weekly time frame also shows positive signs, with a new support level established at $80,000. Indicators such as the Stochastic RSI and Relative Strength Index (RSI) are showing bullish signals, with the RSI bouncing off a strong support level of 44.00.

However, Bitcoin's price movement is closely tied to the broader stock market. The S&P 500's performance will be crucial in determining Bitcoin's next move. If the S&P 500 continues its upward trend and breaks above the $5,670 resistance level, it could provide a tailwind for Bitcoin. Conversely, if the S&P 500 faces rejection at this level and falls to the next major support at $5,400, it could dampen Bitcoin's bullish prospects. The outcome of the FOMC meeting and the subsequent market reaction will be key factors in shaping Bitcoin's price trajectory in the coming days.