Bitcoin’s bullish momentum has hit a pause near the $96,000 level, as investors shift focus to the U.S. Federal Reserve’s upcoming Federal Open Market Committee (FOMC) interest rate decision. The flagship cryptocurrency was last seen trading between $95,000 and $96,000, up over 30% from its April lows.
The current price movement aligns with renewed optimism surrounding U.S.-China trade relations. Former President Donald Trump claimed that trade discussions were back on the table, and China’s Commerce Ministry echoed a willingness to engage though noted that U.S. tariffs remain a major barrier. According to The Wall Street Journal, China may also offer cooperation on fentanyl regulation, a topic often cited by Trump to justify tariffs.
Still, the next major macroeconomic catalyst remains the FOMC’s policy stance. Analysts widely expect the Fed to maintain the benchmark interest rate at 4.5% due to persistent inflation concerns. However, with recent data revealing a 0.3% contraction in U.S. GDP for Q1 the worst reading since 2022 some market participants, including Polymarket traders, are betting on a potential 0.25% rate cut in June.
Why This Matters for Bitcoin
Lower interest rates typically weaken the U.S. dollar and drive capital toward risk assets like Bitcoin. If the Fed signals even a mild dovish turn, it could accelerate Bitcoin’s rally past the key $100,000 psychological level.
From a technical standpoint, Bitcoin remains bullish. The price has broken above a crucial resistance at $88,655, completing a double-bottom reversal. A golden cross has formed, with the 50-day and 100-day moving averages crossing upward a historically strong bullish indicator. Both the RSI and MACD also signal continued buying strength.
If bulls can break above $100,000, the next resistance lies near the all-time high of $109,300.
What’s Next?
The FOMC’s tone will likely determine whether Bitcoin continues its upward momentum or consolidates further. A surprise rate cut or dovish outlook could act as the trigger for a breakout. Traders should watch closely as macroeconomic narratives and technical signals align in what could be a decisive week for Bitcoin.
