Bitcoin News: Bitcoin in Limbo? Key BTC Levels to Watch Before the FOMC Rate Decision

Bitcoin trades near $118,000 ahead of the FOMC meeting, with $120K resistance and $112K downside risk in focus as traders await Powell’s remarks.Key TakeawaysFOMC odds: Polymarket assigns a 97.5% chance of rates staying at 4.25%–4.50%.Upside targets: $120K breakout could trigger a move toward $125K–$141K.Downside risks: BTC could sweep down to $112K if $114K–$116K support fails.FOMC Sets the Tone as Bitcoin StallsBitcoin (BTC) traded flat at $118,200 on Wednesday, as markets awaited the U.S. Federal Reserve’s rate decision. The two-day Federal Open Market Committee (FOMC) meeting concludes Wednesday at 2:00 p.m. ET.Polymarket data shows a 97.5% chance that rates will remain unchanged at 4.25%–4.50%, with only a 2.3% probability of a 25 bps cut.While most traders believe the decision is already priced in, uncertainty around Fed Chair Jerome Powell’s press conference remains a wildcard.“Investors will be listening very carefully to the Fed chair, and a dovish posture can influence the market,” said markets commentator James DePorre.Traders Brace for Post-FOMC VolatilitySome analysts expect typical “dump then pump” price action.Crypto investor TedPillows suggested Tuesday’s dip reflected “panic selling” ahead of Powell’s remarks.“People likely dumped their bags in fear. But they’ll probably end up FOMO buying back in at higher prices after the Fed speaks.”Friday’s nonfarm payrolls (NFP) report and upcoming Trump tariff deadlines add more macro pressure points that could influence BTC’s trajectory, according to Cointelegraph.BTC Price Levels to WatchAnalysts are pointing to several key zones for Bitcoin:Upside Levels:$120,000: Breakout zone; could open the door for a move toward fresh all-time highs.$125,000–$141,000: Glassnode says these levels align with on-chain profit-taking zones, particularly two standard deviations above STH realized price.Downside Levels:$114,000–$116,000: A key support zone that, if lost, could trigger a sweep toward $112,000.$105,400: Short-term holder (STH) cost basis; deeper support sits at the yearly open around $93,000.Analyst Killa shared a chart showing the potential for BTC to dip to $112,000 to “fill the fair value gap” before rebounding.Meanwhile, SuperBitcoinBro noted a “liquidity cluster” between $119,800–$121,000, warning that BTC could briefly sweep lower before squeezing higher.“Bitcoin will stay rangebound until Powell speaks to make a big move,” added trader Nebraskangooner.