Home Bitcoin News Bitcoin Price Recovers 4% After FOMC: Will BTC Reach $109K Next

Bitcoin Price Recovers 4% After FOMC: Will BTC Reach $109K Next

Bitcoin Price Recovers

Bitcoin (BTC) saw a notable bounce of 4% after reacting to the recent Federal Open Market Committee (FOMC) meeting. Initially dropping to $101,365 in response to the Fed’s decision to keep interest rates unchanged, BTC quickly recovered to $104,797. This rally has drives optimism among crypto investors, as the highly anticipated macroeconomic event has now passed. The question remains: Will Bitcoin continue its upward momentum and revisit its all-time high (ATH) of $109K?

Why Is Bitcoin Rallying After the FOMC Meeting?

The FOMC’s decision to maintain the federal funds rate between 4.25% and 4.50% created a momentary dip in Bitcoin’s price, as markets reacted with heightened volatility. However, the subsequent 4.01% recovery reflects a broader sense of relief among investors, who had been waiting for clarity on the Fed’s stance. This recovery aligns with expectations for the crypto market, as many believe the worst of the uncertainty is over.

Additionally, the rally has been further fueled by external factors, such as Senator Cynthia Lummis’ recent tweet discussing the Strategic Bitcoin Reserve. Her mention of holding public hearings on this initiative has stirred speculation about the government’s growing interest in Bitcoin, providing additional bullish sentiment.

Crypto analyst TheFlowHorse also weighed in, noting that while the FOMC’s meeting had a hawkish start, Powell’s later remarks helped stabilize the market. The analyst further emphasized that Bitcoin’s price needs to either rally significantly or dip sharply to provide any substantial trading opportunities in the near future.

Key Levels to Watch for Bitcoin Price Action

From a technical standpoint, Bitcoin’s price has encountered two key levels that will play a crucial role in determining its next move. The $105.4K and $107.2K resistance levels are where the price could face potential reversals if buying pressure fails to sustain.

Over the past 12 days, around 70% of Bitcoin’s trading volume occurred between $101.4K and $105.4K. The recent FOMC-induced volatility caused Bitcoin’s price to bounce off the lower end of this range, and now it is testing the range high of $105.4K. If Bitcoin’s bulls can maintain momentum and break through this resistance, the next key target would be $107.2K. A clean break of this level could trigger a short-seller liquidation and set the stage for an attempt at revisiting the ATH of $109K.

However, if Bitcoin’s price faces rejection at $107K or $105K, key support levels include $104.4K, $102.2K, and $101.5K. A further drop below $101.5K would put Bitcoin’s short-term outlook at risk, with the 2025 VWAP at $99.9K and the $98.4K level marking critical support zones.

What’s Next for Bitcoin and the Crypto Market?

As Bitcoin remains above the $100K psychological threshold, the market’s overall sentiment appears optimistic, especially after the FOMC meeting. If the bullish momentum continues, Bitcoin could see its price inch closer to the ATH of $109K. This could also signal a broader recovery for the crypto market, with altcoins following Bitcoin’s lead. Litecoin, for example, has surged by 15%, while Solana’s price has increased by nearly 9% over the past 10 hours.

Looking ahead, analysts are generally positive about Bitcoin’s potential to break past key resistance levels and reach new highs. TheFlowHorse analyst highlighted that the market may also offer opportunities in altcoins that have experienced significant drawdowns from their ATHs. However, if Bitcoin fails to maintain bullish momentum and reverses from the current levels, the crypto market may face a period of uncertainty.

Conclusion: Will Bitcoin Hit $109K?

Bitcoin’s 4% recovery after the FOMC meeting is a promising sign, but the next critical levels to watch will be $105.4K and $107.2K. If Bitcoin can overcome these hurdles, a retest of its all-time high at $109K could be on the horizon. However, any reversal from these levels would prompt a deeper look at key support zones, with Bitcoin’s price potentially pulling back toward the $99K-$95K range. Overall, as long as Bitcoin maintains its bullish outlook and stays above the $100K level, the cryptocurrency market is likely to remain optimistic in the short term.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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