Bitcoin Price Consolidation: Experts Predict Breakout Amid FOMC Anticipation

High Holder Confidence and Bullish Indicators Fuel Optimism

As the Federal Open Market Committee (FOMC) meeting approaches, the Bitcoin market has entered a consolidation phase above $66,000, with analysts predicting an imminent breakout. The consolidation signifies a stabilization period after a surge in price, indicating potential momentum in the upcoming market movement.

Technical Drivers and Bullish Patterns

Technical indicators, including the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), suggest a bullish momentum for Bitcoin. Analysts believe that the breakout will initially target $69,000, followed by a potential rally towards new all-time highs.

High Holder Optimism

The bullish sentiment is also supported by the high holder conviction in Bitcoin. The number of holders with large amounts of BTC has increased, indicating their long-term belief in the asset's potential.

Major Bullish Chart Pattern Emerging

On the daily chart, Bitcoin is completing a major bullish price pattern known as a Cup and Handle formation. This pattern typically indicates a bullish reversal, suggesting a potential rise to $83,000.

Pullback and Liquidations

Despite the consolidation, Bitcoin faced a brief pullback to $66,000, triggering liquidations worth approximately $250 million. However, traders remain cautiously optimistic, anticipating a strong rebound during the FOMC meeting.

Range-Bound Movement

Currently, Bitcoin remains range-bound between $63,000 and $68,000, with its upside potential capped below the latter level. Analysts believe that a breakout above $68,000 would provide further confirmation of a bullish trend.

IBIT's Bitcoin Purchases

Financial analyst Rajat Soni reported that IBIT, an investment firm, significantly increased its Bitcoin holdings by 4186 units, bringing its total BTC holdings to a notable level. This move demonstrates institutional confidence in Bitcoin.