Bitcoin Price At Crossroads, FOMC Decision Looms, $90K Possible?

Bitcoin (BTC) price hovers near $85,000 as traders brace for the Federal Reserve’s latest interest rate decision.

With risk assets under pressure, markets await clarity from Fed Chair Jerome Powell, whose stance could shape BTC’s next move.

Bitcoin Price Holds Above $80K but Faces Resistance

Bitcoin surged past $84,000 ahead of the March 19 Wall Street open, testing critical resistance levels. Data from TradingView show BTC/USD hitting local highs of $84,358 on Bitstamp.

Despite holding above $80,000 for most of the week, the broader market backdrop remains uncertain.

The S&P 500 and Nasdaq Composite Index have dropped 4% and 8.7% year-to-date, respectively, with BTC losing 10% in the same period.

Analysts at QCP Capital warn that BTC’s support at $80,000 appears “tenuous at best” amid growing macroeconomic concerns. The firm noted in its latest bulletin,

“We won’t attempt to call the exact moment when the music stops, but in the short term, we struggle to identify meaningful tailwinds to reverse this rout.”

FOMC Decision May Trigger Volatility

CME Group’s FedWatch Tool assigns a 99% probability that policymakers will hold the federal funds rate steady.

However, Powell’s remarks will be pivotal in determining Bitcoin’s direction.

“A dovish tone that reduces recessionary fears could send Bitcoin price above the 200-day and 21-day moving averages,” said Keith Alan, co-founder of Material Indicators. The two key levels currently sit at $84,995 and $84,350, respectively.

Investor sentiment remains fragile, with Bank of America’s latest survey revealing the largest cut in U.S. equity exposure on record.

Retail traders, however, continue increasing their stakes in major tech stocks. The Kobeissi Letter reports that net inflows into Nasdaq 100 stocks have doubled recently, with Tesla and Nvidia leading investor interest.

$90K For Bitcoin Price Possible, but Risks Remain

Despite the uncertainty, some analysts see Bitcoin rebounding toward $90,000 if inflation concerns ease.

Markus Thielen, CEO of 10x Research, believes Bitcoin price could stage a counter-trend rally.

“There is a good chance the Fed is mildly dovish,” Thielen said, adding,

“We think BTC will be in a broader consolidation range, but we could trade back towards $90,000.”

Others remain cautious. Ki Young Ju, founder of CryptoQuant, believes Bitcoin price’s bull cycle is over. “Expecting 6–12 months of bearish or sideways price action,” he wrote on X, citing weak on-chain metrics and drying liquidity.

Institutional Demand Shows Early Signs of Recovery

Institutional interest in Bitcoin has shown modest improvement. According to Coinglass data, Spot Bitcoin ETFs saw net inflows of $209.1 million on Tuesday, following a $156.5 million inflow the previous day.

A report from K33 Research highlights that Bitcoin’s price remains closely tied to broader risk-off sentiment.

The upcoming FOMC meeting is unlikely to shift this dynamic unless Powell signals a shift in monetary policy.

Meanwhile, MEXC exchange COO Tracy Jin expects Bitcoin’s price to trade within the $81,000–$86,000 range, with a potential target of $91,000–$92,000.

However, breaking $87,000 quickly remains crucial for bulls. Jin said,

“Major geopolitical events and decisions related to ongoing conflicts may have a stronger impact on Bitcoin’s price than U.S. market developments.”

What’s Next for Bitcoin Price?

A dovish tone could ignite a rally, while concerns over inflation or tightening liquidity might push Bitcoin’s price lower.

Traders are watching $80,000 as key support, with resistance near $85,500 and $87,000.

If Powell signals a shift toward rate cuts later this year, Bitcoin could test $90,000. However, if hawkish policies persist, downside risks toward $76,000 remain.