On Thursday (July 31), entering the Asian market trading session, Bitcoin continued to hold steady above $118,000. The Fed's decision to keep rates unchanged did not bring more waves to the crypto market, as the market awaits more economic data to gauge future trends.

Bitcoin's price still firmly holds above the support area of $117,500, is rising, and may attempt to break through the resistance area at $118,600 to gain more bullish momentum.

On Wednesday, due to Fed Chair Jerome Powell's hawkish remarks triggering over $200 million in liquidations, the crypto market became volatile, and Bitcoin briefly fell below $116,000, but has now recovered above $118,000.

Despite the market generally expecting the Fed to keep interest rates unchanged, and recent inflation data remaining ambiguous, Bitcoin only slightly dropped after the Fed announced its decision. According to CoinGecko data, Bitcoin is currently relatively stable. The largest cryptocurrency by market capitalization has fallen about 4% since hitting a historic high near $123,000 two weeks ago.

Since the last rate cut in December last year, the Fed has maintained interest rates in the range of 4.25% to 4.50%. In the face of ongoing uncertain signs of inflation, the Fed has remained cautious.

Despite rates remaining unchanged, there are divisions within the Fed, with two governors opposing this decision, advocating for a 25 basis point rate cut. These two governors are Christopher Waller and current Vice Chair for Supervision Michelle Bowman. Notably, Bowman expressed differing opinions on the rate policy last September, when she supported a 25 basis point cut, while the final decision was a 50 basis point cut.

In his remarks following the policy statement, Fed Chair Powell stated that the current inflation data "has not changed much compared to the beginning of the year," and although service inflation has declined, "the increase in tariffs is pushing up the prices of certain goods."

Powell added: "A reasonable base case is that these inflation impacts may be temporary, reflecting a one-time price adjustment; but it is also possible that these impacts are more persistent, which is a risk we must assess and manage."

Joe DiPasquale, CEO of crypto asset management company BitBull Capital, wrote in a text to Decrypt: "The market is closely interpreting Powell's statements, and as it stands, his tone suggests that the Fed is still in a wait-and-see mode." However, he also noted that Powell's confirmation of declining service inflation is "encouraging."

However, DiPasquale added, "The mention of tariffs pushing up prices reinforces the view that inflation has not been fully controlled. For the crypto market, this means it will likely continue to consolidate in the short term unless the Fed provides clearer signals about the timing of rate cuts."

Yesterday, Fed Chair Powell's remarks on inflation increased pressure on risk assets, affecting the volatility of the crypto market. Market maker Enflux wrote in a report to CoinDesk: "While policy remains unchanged, Powell's comments about tariff-driven inflation possibly just beginning added a layer of uncertainty, putting comprehensive pressure on risk assets."

"As risk appetite fades and macro information becomes increasingly unpredictable, the market may continue to hold its position until participants clarify the direction of inflation and policy responses in the coming days or weeks," Enflux continued.

The Fed has not yet made a judgment on the September policy decision; the next two rounds of inflation and employment data will be key indicators. Most major cryptocurrencies are currently in a wait-and-see mode, as investors assess the impact of President Trump's initiated global trade war, inflationary pressures, and broader macroeconomic uncertainties. The Consumer Price Index (CPI) rose by 0.3% month-on-month in June, with an annual rate of 2.7%, reaching the highest level since February, far exceeding the Fed's long-term target of 2%.

CPI and other employment data indicate that inflation remains stubborn, and Trump's tariff policies are also beginning to take effect. Earlier this year, the market optimistically expected multiple rate cuts, which could have released more investment funds and driven the crypto market higher.

However, Powell insists on making policy decisions based on data. The CME FedWatch tool shows a nearly 97% probability that the Fed will keep interest rates unchanged, while only one of the remaining three meetings this year has a likelihood of over 50% for a rate cut.

Powell's stance has angered Trump, who has repeatedly criticized him and has not ruled out the possibility of firing him. Last week, Trump became the fourth president in history to visit the Fed, which is seen as one of his latest pressure tactics.

Bitcoin is poised for action.

Bitcoin has started a decent upward trend from the $116,000 area. The current price is trading around $118,500 and is above the 100-hour moving average. A bearish trendline is forming on the Bitcoin hourly chart, with resistance at $118,620. If this resistance area can be broken, it may lead to a new round of gains.

Bitcoin's price had previously pulled back from a high of $119,796, breaking the support levels of $119,000 and $118,500, entering a bearish area in the short term. The bears once pushed the price below the 50% Fibonacci retracement level from the low of $114,733 to the high of $119,796, intensifying the decline, with the price even approaching the $116,000 support area. At this position, the bulls began to intervene, defending the 76.4% Fibonacci retracement level of the range from $114,733 to $119,796.

The price has subsequently risen again, currently above $118,000, with Bitcoin fluctuating around $118,500 and standing above the 100-hour moving average.

The immediate resistance above is at $118,620. At the same time, the trendline resistance on the BTC/USD hourly chart is also at this level.

The first key resistance level is around $119,200, with the next resistance possibly at $119,800. If the price can close above $119,800, it may continue to rise. In this case, the target price could reach $120,500, with further upside potential seeing $122,500, and the final target possibly reaching $123,200.

If Bitcoin fails to break through the resistance area at $118,620, it may start a new round of pullback. The immediate support level below is around $117,500, with the first major support level at $116,250.

The next support area is at $116,000. If it breaks below this, the price may briefly dip to $114,500. A more critical support level is at $113,500; if this level is lost, Bitcoin may continue to decline.

In terms of technical indicators:

Hourly MACD: The MACD is accelerating upwards in the bullish zone;

Hourly Relative Strength Index (RSI): The RSI is currently above 50.

Major support levels: $117,500, followed by $116,250.

Major resistance levels: $118,620 and $119,800.