Bitcoin must close above the key $81K level for the weekly close to prevent downside movement ahead of the FOMC meeting.
Bitcoin Could Face Increased Downside Volatility If It Fails to Close Above $81K
Bitcoin may face increased downside volatility if it fails to close above the key $81K level ahead of next week’s Federal Open Market Committee (FOMC) meeting. This meeting will provide investors with more clues on the Federal Reserve’s monetary policy for 2025.
Analysts have noted that Bitcoin is at risk of further downside volatility. Ryan Lee, head analyst at Bitget Research, stated: “The critical level for the weekly close is the $81,000 range. Holding above that would act as a sign of resilience; however, a drop below $76,000 could invite more short-term selling pressure.”
BTC Price Could Spark Investor Confidence if It Closes Above $85K
Lee also highlighted that the results of the upcoming FOMC meeting could significantly impact BTC investor sentiment. “The market largely expects the Fed to keep interest rates steady, but any unexpected hawkish signals could put pressure on BTC and other risk assets.”
Furthermore, a close above the $85,000 level could reignite investor confidence and trigger a strong upward movement. Enmanuel Cardozo, a market analyst from Brickken, stated that a break above this level could lead to a robust rally.
Trump’s Bitcoin Reserve Plan Could Boost Investor Optimism
Cardozo mentioned that Bitcoin’s short-term momentum may be limited by upcoming economic data, but regulatory developments surrounding Trump’s BTC reserve plan could bring more optimism and mass adoption to the market over time.
On March 14, U.S. Representative Byron Donalds introduced a bill aimed at preventing future administrations from dismantling the Bitcoin reserve through executive orders. If passed, the bill would ensure the preservation of the BTC Strategic Reserve and the U.S. Digital Asset Stockpile, preventing any future administration from eliminating these reserves.
This content does not constitute investment advice. Cryptocurrency markets carry high risks, and it is important to conduct your own research before making investment decisions.
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