Bitcoin (BTC) traded flat at $118,200 on Wednesday as market participants adopted a cautious stance ahead of the Federal Open Market Committee (FOMC) decision. With a 97.5% probability that interest rates will remain unchanged between 4.25% and 4.50% according to Polymarket, traders are closely monitoring Fed Chair Jerome Powell's post-meeting commentary for dovish signals that could influence markets.
Technical analysts identified critical price thresholds: Resistance sits at $120,000, with Glassnode noting that a decisive breakout could target $141,000. Conversely, support levels include $114,000-$116,000 (per analyst Killa), $112,000 (SuperBitcoinBro), and the short-term holder cost basis at $105,400. Market data reveals long-term holders have shifted to net selling near $120K, while Galaxy Digital's reported sale of 80,000 BTC added institutional selling pressure.
Futures markets showed $173.8 million in long liquidations over 12 hours as open interest dropped from $50.58B to $49.58B. Bollinger Band compression indicates impending volatility, with intraday ranges narrowing 45% in three weeks. Traders also await Friday's nonfarm payrolls report and a White House crypto policy disclosure.