Ever since the Fed’s rates were slashed below 5% back in October 2024, they have been reduced consistently month after month. This drop had a significant impact on the Bitcoin price, as it broke above the consolidation and surged above the $100,000 milestone for the first time in history. Now that the Fed rates remain unchanged at 4.25% to 4.5%, the cautious stance amid persistent inflation and moderate growth could raise some concerns.
The Fed noted that economic activity has decreased since the start of the year, while the labour market remained strong and somewhat elevated. Meanwhile, the official remains extremely cautious as they keep a close eye on the possibility of rising uncertainty. The decision to keep the rates unchanged comes as President Trump ramps up pressure on the Fed to cut rates, saying it would boost growth and reduce interest costs on debt.
On the contrary, Fed Chair Jerome Powell believes Trump’s tariffs are making some goods more expensive, which may lead to bearish sentiment on the macro. The traders may take Powell’s take as another red flag for sticky inflation risk under potential Trump tariffs. What’s next for Bitcoin price and the crypto markets?
What’s Next for Bitcoin (BTC) Price as Technicals Turn Bearish
With the rates remaining unchanged, more than $200 million has been liquidated from the markets in the past few minutes. It has been observed that each time Powell speaks, the BTC price corrects. This can be considered a good buying opportunity, as the price usually resumes rising higher after experiencing significant upward pressure.
As seen in the above chart, the Bollinger bands are squeezed after a prolonged expansion, suggesting a massive drop in the token’s volatility. Moreover, the price has dropped below the average bands, hinting towards a potential breakdown if the bands expand further. Apart from this, the RSI and CMF are heading towards the lower threshold, validating the rising dominance of the bears. Interestingly, the +Di & -Di of DMI are heading for a bearish crossover, signalling the BTC price could probably test the support close to $115,000 anytime from now.
Therefore, with the fresh Fed rates, the Bitcoin (BTC) price is expected to experience more upward pressure and reach the local support at $115,260. Rebounding from here, the token’s bearish influence may ease or else a failure may compel the price to enter the crucial support zone between $110,500 and $111,300.
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