BTC Price Eyes Breakout Amid Gold Rally and FOMC Impact

After an impressive rally to a daily high of above $61k, Bitcoin’s (BTC) price has since retraced below $60k on Wednesday during the mid-London session. The flagship coin has experienced significant resistance around $61k, possibly requiring a high-impact news event to break. 

On the positive side, the crypto market is expected to register heightened volatility in the coming days as investors factor in the FOMC statement and the Federal Funds Rate announcement later today. 

Gold Demand on the Rise 

Interest in golf has grown exponentially in the past few years, with 2024 setting new records. As more investors bet on the Fed’s interest rate cut, the Gold price has been rising and recently reached its all-time high.

Since the bullish breakout earlier this year, Gold price has rallied more than 25 percent to reach a high of about $2,588 on Monday, September 16.

Impact on Bitcoin Price Action

With the positive correlation between Gold and Bitcoin prices, the latter is expected to break towards its all-time high in the short term. Furthermore, Bitcoin price has been forming a market reversal pattern in the daily time frame, characterized by a potential triple bottom coupled with a rising divergence on the Relative Strength Index (RSI). 

Mixed Reactions from Whale Investors

Amid the expected higher volatility in the crypto industry triggered by the upcoming FOMC statement and Federal Funds Rate, on-chain data analysis shows a mixed reaction from whale investors. 

For instance, on-chain data tracked by Arkham intelligence shows that Ceffu deposited 1.347 Bitcoins, worth over $81 million, to Binance earlier today. The firm has deposited Bitcoins worth nearly $1 billion to Binance in the past three months.

Meanwhile, the US spot Bitcoin ETFs registered a net cash inflow of about $187 million on Tuesday. Interestingly, none of the US spot Bitcoin ETF issuers registered a net cash outflow on Tuesday.