Bitcoin rebounded on Wednesday morning as the crypto market rose higher and the U.S. dollar remained under pressure ahead of a closely watched Federal Reserve decision later today.
Summary
- Bitcoin price is close to reclaiming the $90k support level.
- The Fed is widely expected to hold interest rates in today’s meeting.
- Bitcoin price action has formed a bullish setup on the 4-hour chart.
According to data from crypto.news, Bitcoin (BTC) rose from its Tuesday low of $87,315 and stabilized around $89,310 at press time.
The bellwether’s move was followed by other large-cap cryptocurrencies, including Ethereum (ETH), BNB (BNB), XRP (XRP), and Solana (SOL), with gains ranging from 1% to 3%. This helped lift the broader crypto market up by 1.3% in the past 24 hours to $3.1 trillion at press time. These measured moves mean investors are waiting for clearer signals before re-engaging with the market.
Bitcoin price has remained in a downtrend since Jan. 15.
Recent tariff threats from U.S. President Donald Trump against Canada for pursuing a free trade deal with China have led to a weakening of the U.S. dollar, which fell to its lowest level since early 2022.
This triggered strong rallies in precious metals such as gold and silver, which clocked new highs this week, but at the cost of capital rotation away from the crypto market.
According to the latest data from Santiment on X, social media chatter is currently favoring gold and silver over cryptocurrency.
Against this backdrop, the two top dollar-pegged stablecoins, Tether (USDT) and USD Coin (USDC), have fallen to their lowest level since Nov. 20, with the decline being the steepest in the past 10 days.
Liquidity was moving out of the crypto market at a time when U.S.-listed spot Bitcoin exchange-traded funds were already witnessing steady outflows. The lack of buying demand ultimately led to Bitcoin losing the $90,000 support level.
It is evident that traders are cautious ahead of the Fed rate decision scheduled for 2:00 PM ET.
The market largely expects the Federal Reserve to hold interest rates steady within its current target range of 3.50% to 3.75% in the Fed’s latest policy meeting as it assesses the impact of the three cuts made in late 2025.
According to the CME FedWatch tool, the odds of no change at today’s meeting are over 97%.
Since the market has largely anticipated the Fed’s latest move, a steady rate decision is likely to reinforce bullish sentiment for risk assets, including Bitcoin. Traders typically pivot toward a risk-on stance when the Fed signals a cut or holds rates steady.
On the other hand, if the Fed signals a hawkish stance, it could trigger a reset, with crypto prices dropping as investors realize they were overly optimistic.
Bitcoin price analysis
On the 4-hour chart, Bitcoin price appears to be moving within an ascending parallel channel pattern, a formation that suggests an asset’s price will continue to rise as long as it remains in it.
Momentum indicators such as the MACD have pointed upward after a bullish crossover, a telltale sign that the rally still has enough momentum to continue before facing a pullback.
Meanwhile, the Relative Strength Index has also formed a bullish divergence, which may be taken as another buy signal.
Hence, the Bitcoin price has a high chance of reclaiming the $90,000 support soon, likely ahead of today’s FOMC meeting.
A decisive breakout from this channel, which also marks its 50-day SMA, could trigger more aggressive buying positioning BTC for more upside.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
