Bitcoin Faces Pressure Ahead of Fed Decision as Key Support Levels Emerge

After briefly breaching $97,000, Bitcoin has slipped to around $94,000, retreating from the $98,000 resistance zone as traders brace for potential volatility tied to upcoming macroeconomic announcements.

Analysts link the pullback to rising uncertainty in the broader economy and anticipation surrounding the U.S. Federal Reserve’s next interest rate move, set to be announced on May 7. Though markets widely expect the Fed to hold rates steady, investors are watching closely for signals about the path of future monetary policy.

Despite the recent dip, on-chain data shows continued demand—Bitcoin ETFs brought in $1.81 billion in net inflows last week, highlighting persistent institutional interest even amid price fluctuations.

Technical observers are now focused on two crucial support levels. FxPro’s Alex Kuptsikevich told CoinDesk that $92,500 and $89,000 could serve as near-term floors if the decline continues.

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He also warned that falling below the $90,000 threshold could trigger more significant technical damage, including a drop under the 200-day moving average.

For now, Bitcoin remains caught between bullish inflows and a cautious macro outlook, with the next moves likely to be shaped by the Fed’s tone and Jerome Powell’s post-meeting remarks.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.