Bitcoin traders are positioning for high volatility ahead of the June 18 Federal Open Market Committee (FOMC) meeting, with the Federal Reserve’s policy decision expected to dictate the cryptocurrency’s near-term price trajectory. BTC currently consolidates within a tightening triangle pattern around $104,000, demonstrating clear indecision in markets as technical indicators flash conflicting signals, including a weakening Relative Strength Index (RSI) and contracting volatility metrics.
Market analysts highlight two distinct scenarios: A hawkish Fed stance involving rate holds or hikes could trigger downside momentum toward critical support levels at $102,470 or lower. Conversely, a dovish shift hinting at future rate cuts may empower bulls to challenge resistance at $107,218 and potentially retest Bitcoin’s all-time high near $111,970. The outcome hinges on how Fed messaging addresses persistent inflation concerns against evolving employment data.
Investor caution remains evident through reduced leveraged positions and widening bid-ask spreads across exchanges, reflecting expectations of sharp post-announcement price swings. The convergence of technical patterns, macro uncertainties, and suppressed market participation underscores the FOMC meeting as a pivotal inflection point, with Bitcoin’s next major trend likely emerging from the Fed’s policy signals.