Maintains Bullish Momentum at $105,000 After Fed Chair Powell’s Comments

TLDR

Bitcoin recovered 4% after FOMC meeting, reaching $105,031 despite initial selloff to $101,365
Federal Reserve maintained interest rates at 4.25-4.50%, with Powell showing openness to crypto banking
Senator Cynthia Lummis announced upcoming public hearings on Strategic Bitcoin Reserve
Technical analysis shows key resistance levels at $105.4K and $107.2K before potential $109K retest
Trump’s election victory has contributed to over 50% gains in Bitcoin price since November

The price of Bitcoin climbed to $105,031 today, marking a 4% recovery following the Federal Reserve’s latest monetary policy announcement. The leading cryptocurrency initially experienced a brief dip to $101,365 before mounting a strong comeback as markets digested the Fed’s decision to maintain current interest rates.

The Federal Open Market Committee (FOMC) kept the federal funds rate steady within the target range of 4.25% to 4.50%, a move that was largely anticipated by market participants. This decision comes after three consecutive rate cuts since September, which had previously reduced rates by a full percentage point.

During the post-meeting press conference, Federal Reserve Chairman Jerome Powell addressed the current state of the economy and monetary policy. Powell noted that while inflation has decreased from its 2022 peak of 9.1% to the current 2.9% annually, the path forward for rate adjustments remains data-dependent.

The cryptocurrency market’s positive reaction was further bolstered by Powell’s remarks regarding digital assets. The Fed chair stated that U.S. banks have the freedom to serve crypto customers, provided they maintain appropriate risk management practices. This stance was interpreted as a supportive signal for the broader crypto industry.

The most important FOMC of our lives today (until the next FOMC.)

Bitcoin is perfectly balanced in the middle of the range which can be seen in very flat relative OI and OB skew.

The only level I am interested in buying at the moment would be flush into the 95k-ish area with… pic.twitter.com/0DXCqGL07f

— adam (@abetrade) January 29, 2025

Adding to the market optimism, Senator Cynthia Lummis announced plans to hold public hearings on the Strategic Bitcoin Reserve. This development suggests increasing institutional interest in cryptocurrency at the governmental level, potentially opening new avenues for Bitcoin’s integration into traditional financial systems.

The recent price movement has established several key technical levels that traders are watching closely. The range between $101,400 and $105,400 has contained 70% of trading volume over the past twelve days. The current price action near $105,400 represents a crucial resistance level that could determine Bitcoin’s short-term direction.

Market analysts have identified $107,200 as another important technical barrier. A successful break above this level could trigger a chain reaction of short-seller liquidations, potentially clearing the path for Bitcoin to challenge its recent all-time high of $109,000.

Trump’s election victory in November has played a notable role in Bitcoin’s market performance, with the cryptocurrency gaining over 50% since the election results. Market participants have attributed this rally to expectations of more crypto-friendly policies under the new administration.

However, some market experts advocate for cautious optimism. Bitget CEO Gracy Chen commented on the current market conditions, suggesting that immediate growth might be limited as much of the optimism surrounding Trump’s crypto stance may already be reflected in current prices.

The broader cryptocurrency market has shown similar strength, with Ethereum rising 2% to $3,184 and Solana gaining 4.1% to reach $239. These movements indicate a general uplift in market sentiment across the digital asset space.

Support levels have been established at $104,400, $102,200, and $101,500. Should Bitcoin’s price retreat below the 12-day trading range’s lower boundary of $101,500, additional support can be found at the 2025 VWAP of $99,900.

Some traders are preparing for potential deeper price corrections. Popular analyst Adam has indicated interest in buying opportunities around the $95,000 level, contingent on supporting technical indicators. Another trader, RektProof, has highlighted a four-hour demand zone extending from $90,900 to $95,300.

Potential demand alongside FOMC this week so staying flat leading into it

Will watch for any moves below- also waiting for Mondays range to form to get a general bias#Bitcoin pic.twitter.com/X4hznDKJQd

— RektProof. (@RektProof) January 27, 2025

The cryptocurrency’s ability to maintain prices above the psychological $100,000 level over recent weeks has demonstrated market resilience. This strength, combined with the positive response to the FOMC meeting, suggests continued support for current price levels.

TheFlowHorse, a market analyst, has noted potential opportunities in alternative cryptocurrencies that have experienced substantial drawdowns from their all-time highs. This observation has been supported by recent market action, with Litecoin rising 15% and Solana gaining nearly 9% in the past ten hours.

The Czech central bank’s consideration of a $7 billion Bitcoin reserve has introduced an additional element of institutional interest. Central Bank Governor Aleš Michl’s upcoming proposal could position the Czech Republic as the first Western central bank to hold digital assets in its reserves.

Traditional financial markets showed mixed reactions to the Fed’s decision, with the Nasdaq declining 1.1% and the S&P 500 falling 0.9%. Gold has maintained its position above $2,750 in early Asian trading on Thursday, indicating ongoing demand for traditional safe-haven assets alongside digital ones.

Bitcoin’s price currently stands at $105,031, maintaining its position above key support levels as market participants await further developments in both monetary policy and cryptocurrency regulation.