Bitcoin (BTC) has surged nearly 4% in the past 24 hours amid heightened market volatility, with analysts eyeing a potential breakout to $90,000 as the cryptocurrency retests critical resistance levels. Recent market analysis had highlighted the importance of the $80K support level, which has now proven resilient.
FOMC Meeting Catalyzes Bitcoin’s Price Action
On Wednesday, Bitcoin broke above the crucial $85,000 resistance, marking a significant 5% recovery from recent lows. The move coincided with the Federal Reserve’s latest policy announcement, which maintained interest rates at 4.50% while signaling potential rate cuts later in 2025.
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Critical Price Levels to Watch
Technical analysis reveals two key price zones that traders should monitor:
- Support Zone: $80,000-$81,000
- Resistance Zone: $85,000-$86,000
The Fed’s dovish stance has reinforced bullish sentiment, with multiple analysts suggesting that a successful break above $86,000 could trigger a rapid move toward $90,000.
Technical Indicators Signal Potential Breakout
The Daily RSI shows decreasing selling pressure, while trading volume patterns suggest accumulation at current levels. Key observations include:
- Declining seller volume over the past week
- Increasing buyer presence at support levels
- RSI downtrend since November 2024 acting as resistance
FAQ Section
What is the next major resistance level for Bitcoin?
The immediate resistance lies at $86,000, with $90,000 being the next significant psychological level.
How might the Fed’s decision impact Bitcoin’s price?
The Fed’s dovish stance and planned reduction in balance sheet tightening could provide sustained support for Bitcoin’s price action.
What are the key support levels to watch?
The primary support zone is between $80,000-$81,000, with secondary support at $73,500.