Bitcoin’s price has been rangebound for the last few days, consolidated between $117,261 and $120,000. However, recent market conditions and external influences, such as the Federal Open Market Committee (FOMC) meeting on Wednesday, caused a temporary decline.
As of now, Bitcoin is priced at $118,419, slightly recovering after dipping to $115,700. Despite this recovery, Bitcoin’s path remains uncertain, owing to factors such as sell-side pressure.
Bitcoin is Showing Signs of a Decline Ahead
The Relative Unrealized Profit (RUP) has recently broken above the +2σ band, a level often associated with euphoric market phases. Historically, this setup has preceded market tops, signaling a latent sell-side pressure that could eventually drag prices lower.
The current state of the RUP indicates that a pullback may be likely in the coming days, potentially pushing Bitcoin’s price out of its consolidation range. Given past patterns, a shift toward selling could result in further downward pressure.
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The Squeeze Momentum Indicator (SMI) is signaling that Bitcoin is entering a consolidation phase. Historically, these periods of consolidation, where price movement becomes more limited, have preceded significant price moves once the squeeze is released.
As the squeeze continues to build, Bitcoin’s price is poised for a sharp move in one direction. If the broader market remains bearish, Bitcoin could see a sharp decline, particularly if the SMI confirms this negative trend in the coming days.
BTC Price Needs To Jump
Bitcoin is currently trading at $118,410, after falling to $115,700 on Wednesday as the FOMC report came out. The market’s response to the Federal Reserve’s decision to keep interest rates unchanged led to BTC’s recovery, but the underlying market conditions still pose risks.
Bitcoin’s price is susceptible to further declines if investors start booking profits, potentially pushing the cryptocurrency below the $117,261 support level. A drop past this support could lead Bitcoin’s price to $115,000 or even lower.
The only way this bearish outlook would be invalidated is if Bitcoin manages to hold above $120,000 and reclaim $122,000 as support. A surge above these levels would likely provide the momentum needed to push Bitcoin toward new highs. However, until that happens, Bitcoin’s price remains vulnerable to fluctuations and market pressures.
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