Bitcoin's price continues to hover around $103,300 as traders begin to reduce risk ahead of the upcoming FOMC decision. Data show mid-term holders have realized significant profits.
Current Market Situation for Bitcoin
Bitcoin's price dropped to $103,300 as traders started cutting risk ahead of the FOMC meeting and the subsequent interest rate decision set to be announced on Wednesday. The correction followed a bearish weekly candle close, raising concerns about a potential trend reversal, particularly amid geopolitical tensions including the Israel-Iran conflict.
Technical Analysis and Support Levels
From a technical perspective, Bitcoin may be approaching a short-term bottom between $102,000 and $104,000, where a dense liquidity pocket and historical order blocks intersect. Analysis indicates a quick reaction from $102,000 is expected due to the proximity of the middle band of the Bollinger Bands, which is around $106,000 acting as dynamic resistance.
Holder Dynamics and Price Predictions for Bitcoin
Despite the current negative trends, long-term investor behavior remains optimistic. Data shows long-term holders are refraining from large-scale spending, which historically has often preceded price increases. Additionally, a healthy MVRV Z-score indicates that Bitcoin remains fundamentally undervalued.
The situation in the Bitcoin market remains uncertain; however, signs of sustained demand from long-term holders are observed. With the important FOMC decision on the horizon, traders remain cautious. Predictions suggest the possibility of a short-term recovery, but also highlight the risks of further correction.
