The price of Bitcoin continues to hover around $110,000 while awaiting a key interest rate decision from the US Federal Reserve.
Fed’s Interest Rate Decision and Market Expectations
According to CoinMarketCap data, Bitcoin has seen a minor increase of 0.44%, trading at $111,074. Last week’s US employment report fell short of expectations, strengthening the likelihood of an interest rate cut by the Fed. The employment data showed an increase of only 22,000 jobs in August, well below the anticipated 75,000.
Critical Technical Levels for Bitcoin
Analysts highlight $110,000 as the most critical support level for Bitcoin. If this level holds, the market structure would remain positive, with resistance levels identified at $113,400, $115,400, and $117,100. Overcoming these barriers is considered essential for reducing sales pressure.
Factors Influencing the Bitcoin Market
Blockchain indicators suggest that the supply of stablecoins is nearing record levels, creating potential liquidity for an upward trend. Meanwhile, the decline in Bitcoin and Ethereum balances on exchanges is seen as a factor limiting short-term selling pressure. The forthcoming unemployment claims announcement and regulatory initiatives by the SEC and CFTC, following the Fed’s interest rate decision, are also pivotal developments that could influence the market’s direction.
The overall situation surrounding Bitcoin largely depends on the Fed's decisions, as well as market sentiments and technical levels that will dictate its short-term fate.
