Bitcoin faced a turbulent week in mid-June 2024, as the cryptocurrency market reacted sharply to the US Federal Reserve’s decision to maintain interest rates, dashing hopes for an early 2024 cut. On Wednesday, June 12, Bitcoin’s price plunged to as low as $66,865, marking a 7.22% decline within the week. Despite this downturn, Bitcoin managed to hold above the critical psychological support level of $65,000, showcasing resilience amid broader market volatility.

Federal Reserve’s Impact on Bitcoin Price

The Federal Open Market Committee (FOMC) took a bold decision to hold the interest rates steady came as a surprise to many investors who anticipated a more dovish stance amidst signs of economic slowdown, including a deceleration in Consumer Price Index (CPI) inflation. This decision triggered a negative sentiment across risk assets, including cryptocurrencies like Bitcoin, as investors adjusted their expectations for economic policy going forward.

Bitcoin Market Reaction and Investor Sentiment

Following the Fed’s announcement, Bitcoin(BTC) experienced a swift sell-off, dropping to $66,865 from its very recent highs. However, what stood out was Bitcoin’s ability to avoid breaching the $65,000 support level, which has been a crucial benchmark for market stability. This resilience was attributed to long-term investors showing reluctance to sell off their holdings, as indicated by Santiment’s Age Consumed chart.

The Age Consumed metric, which measures the level of the Bitcoin(BTC) movement among long-term holders, revealed a significant decline in selling pressure compared to previous spikes in May. This suggests that despite short-term volatility, there is a prevailing sentiment among long-term holders to retain their BTC positions, contributing to Bitcoin’s price stabilization above $65,000.

Technical and On-chain Analysis

Looking ahead, Into the Block’s IOMAP data provides further insights into the Bitcoin’s(BTC) price dynamics. The analysis indicates a substantial accumulation of BTC around the $65,600 level by a large cluster of addresses, which acquired significant amounts of Bitcoin at an average price of $65,591. This accumulation suggests that these holders may act as a support base, likely to initiate buying activity should Bitcoin approach the $65,600 mark, potentially triggering a price rebound.

Conversely, Bitcoin bulls face formidable resistance near the $69,000 territory, where a breakout would require substantial buying momentum to sustain further price gains. In the absence of significant catalysts, Bitcoin is anticipated to consolidate within the $66,000 to $70,000 range in the near term, reflecting the current market sentiment and investor cautiousness following the Fed’s decision.

Future Outlook and Price Forecast

As Bitcoin navigates through market uncertainties, analysts and traders are closely monitoring key support and resistance levels for potential price movements. The $65,000 support level remains critical, acting as a barometer for Bitcoin’s short-term stability and investor confidence. Should Bitcoin manage to sustain above this level amidst ongoing market pressures, it could pave the way for a gradual recovery towards higher resistance levels.

In conclusion, while Bitcoin faced a setback following the Fed’s rate decision, its ability to hold above $65,000 underscores resilience and investor confidence in the digital asset. As regulatory and macroeconomic factors continue to influence market dynamics, Bitcoin’s price trajectory will depend on how effectively it maintains support levels and responds to market sentiment in the coming weeks.