Bitcoin price recovery has stalled as focus shifts to the upcoming Federal Open Market Committee interest rate decision.
Bitcoin (BTC) was trading between $95,000 and $96,000 at last check Sunday. That’s up by about 30% from its lowest level in April this year.
The price movement coincided with President Donald Trumo’s claims that trade talks between the US and other countries, including China, were taking place.
In a statement, China’s Commerce Ministry indicated that it was open to talks with the Trump administration, but that tariffs prevented them.
Per the Wall Street Journal, China is also planning to make “a potential fentanyl offer” since Trump frequently used drug trafficking to justify the tariffs.
The upcoming FOMC (Federal Open Market Committee) interest rate decision will be the next key catalyst for the Bitcoin price. This will set the tone for what to expect in the second half of the year.
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Economists expect the U.S. Federal Reserve to maintain interest rates at 4.5%. Officials will also maintain a cautious tone because inflation remains elevated. They also expect prices to rise gradually as Trump’s tariffs take effect.
At the same time, officials are concerned that the economy may be moving towards a recession. Data released last week showed that the economy contracted by 0.3% in the first quarter, the worst performance since 2022.
As such, officials may still propose a 0.25% cut at the June meeting, as Polymarket traders expect. This move will likely fuel the next Bitcoin price rally.
Bitcoin price technical analysis
Bitcoin price chart | Source: crypto.news
The daily chart shows that the BTC price has rallied in the past few weeks, rising from a low of $74,330 to a high of $97,927. It has crossed the important resistance level at $88,655, the neckline of the double-bottom pattern at $76,665.
Bitcoin has formed a mini golden cross pattern as the 50-day and 100-day moving averages have crossed each other. Top oscillators like the Relative Strength Index and the MACD indicators have all pointed upwards.
Therefore, the coin will likely continue rising as bulls target the resistance at $100,000. A break above that level will point to more gains, potentially to the all-time high of $109,300, in line with this BTC price prediction.
Read more: Stocks surge on hopes of U.S.-China trade de-escalation
