Bitcoin has been fluctuating around $34,000 in the run-up to the Fed decision. How will the price react to the Fed’s announcement that it may pause its rate hikes?

  • At press time, Bitcoin consolidated its recent recovery gains above $34,000.

  • The large buy order is for $33,000; the sell orders are for $35,000 and $40,000.

Bitcoin [BTC] entered a range-bound pattern on Oct. 25 and consolidated gains above $34,000. A continuation of this range ahead of the Federal Reserve’s decision on Nov. 1 could expose the coin to mild price volatility.

With open liquidity at $35,900, a recent BTC price prediction expected a rise to $36,000. At press time, this idea has yet to materialize as BTC has failed to break above $35,200. With the Fed decision approaching, what can traders expect next week?

Key Bitcoin Price Levels to Consider

Source: BTC/USDT on TradingView

Liquidity on the 12-hour chart is at $30,900 – $32,800 (white). Above it, a key overhead and bearish order block formed in May 2022 is located between $38,000 and $40,000 (red). However, the immediate hurdle for the bulls to clear is the recent new high at $352,000.

Notably, over 99% of the surveyed interest traders expect the Fed to pause its rate hikes in November. Hence, Bitcoin could see a minor rebound. The overhead resistance levels to watch out for are $35,200, $37,700, and the $38,000 to $40,000 hurdle.

But negative sentiment that the Fed is unlikely to raise interest rates could put Bitcoin at risk to the downside. In this bearish scenario, the liquidity zone of $30,900 – $32,800 (white) would be a key support.

Both the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) readings are positive. This shows that BTC has seen huge buying pressure and capital inflows over the past few days.

Buy order at $33,000; main sell order at $35,000/$40,000

Source: Mobchart (BTC buy and limit orders on Binance exchange on October 29)

Data from Mobchart shows a large amount of buying interest below $34,000. Therefore, BTC may attempt to defend the psychological level of $34,000 in the coming days. Notably, at press time, over 300 buy orders for BTC at $33,000 have been placed on the Binance exchange.

On the sell side, $35,000 and $40,000 recorded a large number of limit sell orders. At press time, there were 218 BTC for sale on Binance at $35,000. Interestingly, there were also 387 BTC for sale at the $40,000 level.

This means that Bitcoin’s move above $35,000 could be challenged if more players sell at this level.

At the same time, a break below $33,000 might be a stretch considering the huge demand interest. The level lies within the liquidity range on the chart, which reinforces its role as a key demand level.