Bitcoin’s price stability near $118,815 is encountering headwinds from declining demand signals among U.S. investors. A key metric, the Coinbase Premium Index, has turned negative, indicating reduced buying enthusiasm stateside and suggesting potential net inflows of Bitcoin to exchanges.
The upcoming Federal Reserve monetary policy decision is seen as a critical juncture for the market. A hawkish stance could paradoxically boost Bitcoin’s price if it signals forthcoming interest rate cuts, thereby influencing momentum in the digital asset space.
Technical analysis underscores resistance at the $119,500 level. Should a pullback occur, initial support lies at $118,000, followed by $116,300. Failure to hold these levels could lead to deeper declines towards $112,000 or even $109,000, though current market structure suggests consolidation remains possible.
Market momentum indicators show mixed signals. The relative strength index (RSI) reading of 60 leans neutral, while both the moving average convergence divergence (MACD) and awesome oscillator indicate a potential weakening in upside momentum.