Bitcoin Dips Ahead of FOMC Minutes and Powell Speech: Key Levels to Watch

Sean Williams
Bitcoin Gold

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  • BTC slips after recent all-time high, trading around $122K.
  • Traders watch FOMC minutes and Powell speech for market cues.
  • Support at $120K is critical; below could trigger further declines.

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Bitcoin and major altcoins saw a pause in their recent rally as traders brace for critical macroeconomic updates this week. The release of the Federal Open Market Committee (FOMC) minutes and the upcoming speech by Fed Chair Jerome Powell have created uncertainty in the crypto market, leaving investors cautious.

Traders Eye FOMC Minutes and Powell’s Remarks

The FOMC meeting minutes are due today, followed by a series of speeches from Fed officials, with Powell set to address monetary policy, inflation, and the economic impact of the ongoing U.S. government shutdown on Thursday. Markets are closely monitoring these updates for cues that could support Bitcoin’s next leg higher.

Rising inflation concerns amid a so-called “debasement trade”—where investors flock to alternatives like gold, silver, and Bitcoin—have added to market volatility. The 10-year U.S. Treasury yield held steady at 4.13%, while the U.S. Dollar Index (DXY) approached a two-month high near 99, pressuring crypto prices and halting yesterday’s recovery.

Bitcoin and Altcoins React to Market Pressure

Bitcoin slipped from its recent all-time high of $126,200 to a low of $120,681, currently trading around $122,495—a 2% decline in 24 hours. Analysts remain optimistic about further upside, citing dip-buying opportunities after profit-taking near record highs.

Also Read: Bitcoin Breakout Ahead: Low Volatility and Strong Accumulation Signal Rally

Michael van de Poppe noted that minor pullbacks are normal after new ATHs, while CrediBULL Crypto highlighted that Bitcoin’s trend remains bullish, approaching what could become a parabolic move. However, analyst Ted Pillows cautioned that a failure to hold the $120,000 support zone could trigger a drop toward $117,000-$118,000, underscoring the market’s sensitivity to macro news.

Cautious Optimism Ahead

With macroeconomic signals dominating sentiment, Bitcoin traders remain in a holding pattern. The FOMC minutes and Powell’s speech will likely define the short-term trajectory of the crypto market. For now, cautious optimism prevails, as Bitcoin could either stabilize above key support or face a correction before resuming its upward momentum.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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