Bitcoin slides below $80K as Fed decision looms

Bitcoin recently dropped below the crucial support zone around $80,000 as fears of a potential US strike on Iran over the weekend put pressure on the crypto market. The absence of US attacks eased the bearish momentum temporarily, but the broader outlook remains unchanged as the ongoing risk of further escalation continues to cap gains.

Attention is now on the Federal Open Market Committee decision scheduled for tomorrow, where the Fed is anticipated to hold interest rates steady and maintain its current policy stance. Since no dot plot will be released at this meeting, the focus will be on comments from Fed Chair Warsh.

A surprise rate increase could trigger a significant selloff in Bitcoin, driven by hawkish repricing and heightened concerns over growth. Conversely, a largely neutral outcome might spark a short-term relief rally but would not alter the fundamental outlook.

Bitcoin Technical Analysis – Daily Timeframe

On the daily chart, Bitcoin has fallen below the key $80,000 support level. Sellers are expected to continue accumulating around these levels, with a defined risk above the broken support, targeting the $75,000 level next. Buyers, meanwhile, will want to see the price climb back above the support to set up a rally toward the $84,000 resistance.

Bitcoin Technical Analysis – 4 Hour Timeframe

On the 4-hour chart, consolidation is visible just below the broken support. There is little new to add: sellers will keep piling in with a defined risk above the broken support, while buyers will need to wait for a move back above the support to begin positioning for new highs.

Bitcoin Technical Analysis – 1 Hour Timeframe

On the 1-hour chart, the consolidation is clearer, with price action forming a symmetrical triangle. Sellers are likely to continue accumulating around these levels, with a defined risk above the broken support, aiming to push to new lows. Buyers will look for a break above the upper trendline to build positions for a rally to the $84,000 resistance. The red lines mark the average daily range for today.

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Today brings the US Consumer Confidence report. Tomorrow is the FOMC rate decision. Thursday features the US GDP report, along with the US PCE and latest US Jobless Claims figures. Friday concludes the week with the US Employment Cost Index.