Bitcoin holds near $112K ahead of the Fed rate decision as traders eye a potential CME gap fill around $111K.
Bitcoin moved past $116,000 during U.S. market hours on Tuesday, continuing its upward trend as volatility increased ahead of the Federal Reserve’s next rate decision.
Traders remain split on whether the price will rise further or pull back to close the current CME futures gap near $111,000.
Data from TradingView showed Bitcoin reaching $116,077 on Bitstamp, gaining around 1.6% in daily performance. The move came despite concerns that prices often decline before major U.S. economic events.
The market is closely watching the Federal Open Market Committee (FOMC) meeting, where a 0.25% rate cut is widely expected. Investors are also looking for clues from Fed Chair Jerome Powell about future rate policy. Traders say this could influence Bitcoin’s direction later in the week.
Crypto analyst Michaël van de Poppe said on X that Bitcoin is holding steady and may be starting a new uptrend. He also noted that gold’s recent drop below $3,900 is boosting interest in risk-on assets like Bitcoin and altcoins.
Some traders believe Bitcoin may rise to $117,000 before pulling back. Trader Killa shared a chart showing resistance just above the current price, warning that the price might soon return to fill the weekend CME futures gap near $111,200.
“CME gap as you can see is not that far away,” he wrote. “We have a high chance of re-visiting 111.2K.”
Another trader, BitBull, highlighted two support zones at $106,000 and $110,000, predicting one more major push to new highs after a possible short-term correction.
Despite Bitcoin’s recent strength, some market analysts remain cautious. Concerns over falling trading volume and bearish technical divergences have raised questions about whether the rally can continue.
The CME gap remains a key technical factor. Gaps left by futures markets over the weekend are often filled in later trading, which has led some traders to expect a near-term pullback.
As of writing, Bitcoin was trading near $112k, still above key support but under resistance. The next move may depend on Wednesday’s FOMC announcement and how the market reacts to the rate policy update.
Traders are now watching price action closely as volatility increases and short-term targets shift with each new development.
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