$Bitcoin (BTC) is hovering near the $109,000 mark, maintaining stability ahead of a pivotal week for global markets. The next FOMC meeting is just six days away, and traders are watching closely for signals of another interest rate cut or a policy pause.
BTC/USD 2-hours chart – TradingView
The Fed’s decision could define the next major move for risk assets. While inflation remains above target, the recent slowdown in economic data has reignited hopes that the central bank may continue easing. Historically, rate cuts tend to favor Bitcoin and other cryptocurrencies, as investors move away from yield-based assets toward higher-risk opportunities like digital currencies.
The $BTC/USD chart shows strong support near $106,000, a level tested multiple times this week. Resistance lies between $110,000 and $112,000, where previous rallies have been rejected.
Technical indicators hint at a neutral-to-bullish bias:
- RSI sits around 54, suggesting balanced momentum with room for upside.
- MACD is slightly positive, showing potential for a short-term bullish crossover if momentum continues.
If Bitcoin maintains support above $107,000 into the FOMC week, a breakout toward $112,000–$115,000 could follow. However, a break below $106,000 might trigger another correction to the $103,000 range.
Gold Retreats as Crypto Prepares to Shine
Meanwhile, gold ($XAU/USD) has cooled off, dropping to around $4,110 after peaking near $4,350 earlier this month. The chart reveals a downward adjustment as traders lock in profits and reallocate ahead of the Fed’s decision.
XAU/USD 2-hours chart – TradingView
With gold losing short-term momentum — RSI near 46 and MACD still negative — investors could rotate capital back into crypto as a speculative hedge, especially if the Fed signals dovish intent.
The Federal Open Market Committee (FOMC) determines the direction of U.S. interest rates, which directly impacts global liquidity and market sentiment. When the Fed eases policy, liquidity increases, making assets like Bitcoin more attractive due to their growth potential and limited supply.
Conversely, if the Fed signals a longer pause or tighter stance, risk assets may temporarily face selling pressure. Still, Bitcoin’s resilience around $109K suggests traders are positioning for a potential rally if the Fed delivers a dovish surprise.
Bitcoin Prediction: Capital Rotation in Motion
As gold adjusts lower and the FOMC countdown begins, Bitcoin could be entering a crucial accumulation phase. If the Fed confirms a more accommodative policy path, we may see a capital rotation from traditional safe havens into digital assets, boosting BTC and altcoins into November.
For now, the $106K–$112K range remains the key zone to watch — with volatility likely to spike once the Fed speaks next week.