Bitcoin (BTC) Market Update — Fed Decision Looms, Key Levels in Play
Bitcoin is currently locked in an ABC correction phase, hovering around crucial support zones as traders await the upcoming Fed interest rate decision. Volatility is expected to spike, so here’s a breakdown of the key levels and scenarios to watch.
Current Structure:
BTC is likely in Wave 4 or B Wave correction.
The price is approaching the 50% Fibonacci retracement, signaling that the correction might deepen before a reversal.
Key Support Zones:
First Micro Support: $96,122
(If this breaks, expect a shift toward deeper correction targets)
Main Support Zone: $95,057 – $94,337
(Critical for maintaining bullish structure)
Bullish Scenarios:
1. Wave C Rally — If BTC holds $96,122 and bounces, expect a rally toward the next target zone.
2. Final High Before Deeper Pullback — BTC could push one more high before entering a larger corrective move.
Targets (If Bounce Occurs):
Target 1: $97,879
Target 2: $98,907
(These are key resistance levels for the next possible high)
Bearish Scenario:
A decisive break below $96,120 would shift probabilities toward a larger correction.
Possible downside target: Mid to Low $80,000s in coming weeks.
Stop Loss for Long Positions:
Below $94,300
(Breakdown below this invalidates bullish setups and confirms deeper correction)
Analysis Summary: Bitcoin is nearing the end of its recent rally that started in early April. A short-term bounce is possible, but downside risk remains if key supports fail. Traders should prepare for volatile swings around the Fed decision and be cautious of fakeouts around Fibonacci zones.
Recommendation: Watch $96,122 closely — bullish above, bearish below. Manage risk tightly today due to expected volatility.