As markets brace for the Federal Open Market Committee (FOMC) meeting, Bitcoin has made a strong comeback, recovering from a recent dip to $91,500 and now hovering around the $97,000 mark. This sudden rebound has caught the attention of investors and traders alike, igniting discussions on whether this move signals genuine bullish momentum or is simply another wave of market hype.
The timing is critical. Historically, FOMC meetings have had a significant impact on crypto markets due to interest rate announcements and macroeconomic policy shifts. Many traders anticipate that any dovish signals from the Federal Reserve could further fuel risk-on assets like Bitcoin, especially if hints of rate cuts or economic support measures emerge.
Technical indicators show signs of recovery, with BTC bouncing off key support levels and regaining upward traction. However, some analysts warn that thin trading volumes and over-leveraged positions may lead to a false breakout. The fear of "buying the rumor and selling the news" still lingers.
Still, investor sentiment appears cautiously optimistic. If Bitcoin manages to consolidate above the $97,000 level in the coming days, it could pave the way for a new bullish wave. On the other hand, failure to maintain momentum might result in another pullback, especially if the FOMC outcome disappoints risk-takers.
For now, traders are watching closely. Whether Bitcoin’s rise is a precursor to a breakout or just another temporary spike will soon be tested as the FOMC reveals its hand.
