The pre-FOMC dip in Bitcoin appears to be normal, with good support at around 112K. Trading above 120K will open the door to 143K, according to analysts and pricing models.
Bitcoin has just entered a downturn, but has remained stable at a very important support of $112,000. This was attributed by market watchers as a typical pre-FOMC correction, where no significant negative changes would be had. This slump is generally perceived to be a floor test and not a change in direction.
Analysts note that Bitcoin has to clear 120,000 to set the stage of a powerful upsurge.
The long-term price ranges imply that exceeding this point would eliminate past resistance and create space to the next big target at around 143, 000.
These bands are based on on-chain data and they tend to act as highway lanes guiding the subsequent price movements.
According to one chart by Ali Charts, the Bitcoin price is close to this important band of $120K, pending as it is right below it.
Source – Ali_charts x
When reclaimed, the trail appears less congested until it reaches the upper band near $143,000. This milestone is not assured, but very likely to be achieved when over $120K is reached.
Bitcoin is testing its lower limit around the level of $112,000, and it should not lose this level to sustain the uptrend. In case this level continues, the market may start moving upward again very soon.
Glassnode market data show a supply of new buyers near $111,000, with sellers likely to be found around $117,000. This tug of war establishes a price range that preconditions the next breakout.
In a nutshell, a short-term decline in Bitcoin before the announcement of the Federal Reserve is normal.
The bulls need to break through on the level of 120,000, and I suppose it would open the gates to a rush to 143,000. The support of 112,000 is also critical towards keeping the bullish momentum.
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