BTC Faces Resistance as Market Reacts to Fed Policy Outlook
Bitcoin (BTC) slipped below $115,000 following the latest U.S. Federal Reserve policy update, as traders weighed the implications of tighter monetary conditions. The largest cryptocurrency is currently trading around $114,983, down 1.57% on the day, showing signs of hesitation after last week’s strong rebound.
On the daily chart, BTC had been moving within a descending channel before briefly breaking out above resistance. However, the move stalled as sellers stepped in near the $120,000 supply zone, highlighted in red. The failure to secure a close above this region pushed prices back into the mid-range.
“Bitcoin is struggling to establish momentum above $120,000, which remains a crucial resistance point,” According to BITX analysts. “Until the market clears this level with volume, downside risks persist toward the $110,000 support area.”
Key levels to watch include the green demand zone between $110,000–$112,000, which has acted as a strong base in recent weeks. A daily close below this level could expose BTC to deeper corrections, with potential retests of $102,000 and even $94,000, marked by earlier accumulation zones.
The reaction comes after the Federal Reserve signaled it may keep interest rates elevated for longer, dampening risk appetite across global markets. While equities also saw volatility, Bitcoin’s move highlights the asset’s growing sensitivity to macroeconomic signals.
Despite short-term weakness, some traders remain optimistic. “As long as Bitcoin holds above the $110,000 support band, the broader bullish structure remains intact,” BITX market strategist noted. “A breakout above $120,000 would confirm renewed strength, opening the path toward $124,000 and potentially new highs.”
For now, Bitcoin is caught between strong resistance at $120,000 and solid support at $110,000. Market participants will be watching closely for confirmation of direction in the coming days, especially as trading volume consolidates around these key zones.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.