BTC Could Dip to $90K Ahead of the Fed’s Next Meeting, Traders Anticipate

Bitcoin (BTC) fell below $95,000 on Monday, with traders now turning their attention to a possible decline toward $90,000 or lower, as the market shifts focus to this week’s crucial Federal Reserve meeting. The Fed is expected to hold interest rates steady on Wednesday, but all eyes will be on the central bank’s comments for clues about future policy changes, particularly regarding potential rate cuts.

This price pullback follows a strong two-week rally where Bitcoin briefly surged past $98,000, attracting both retail traders and institutional investors. However, several analysts are warning that a combination of technical resistance and macroeconomic risks could pressure prices further.

Resistance Levels and Possible Downside

“We’re currently at a critical resistance level that previously acted as support between December and February,” explained Alex Kuptsikevich, an analyst at FxPro, in an email to CoinDesk. He highlighted that if Bitcoin fails to hold above $95,000, the next potential downside targets could be $92,500 and $89,000. “A break below $90,000 could be significant, both technically and psychologically, pushing Bitcoin below the 200-day moving average,” he added.

Focus on Trade Talks and Fed Policy

With global trade talks, especially U.S.-China tariff discussions, still in play, traders are cautious about potential volatility in the crypto market. These talks can heavily impact Bitcoin’s price due to their influence on global economic conditions and investor sentiment.

The Fed’s policy decision on Wednesday is also under close scrutiny. While many analysts expect the Fed to maintain current rates, the market is keen to understand whether any shift in monetary policy could come later in the year. “Solid data and hopes for a resolution in trade tensions have contributed to a recent market recovery,” noted QCP Capital in a morning report. “However, ongoing tariff risks remain a concern, and the key question is whether the Fed will bow to political pressure or continue its resistance to cutting rates,” they added.

Bitcoin ETFs Attracting Capital, But Caution Remains

In contrast to Bitcoin’s pullback, spot Bitcoin ETFs continue to see inflows. According to data from SoSoValue, the ETFs saw $1.81 billion in net inflows last week, indicating sustained investor interest in Bitcoin. However, on-chain data from Glassnode suggests caution, as the unrealized gains for long-term Bitcoin holders (LTHs) have reached nearly 350%, a level historically associated with periods of significant profit-taking.

“As we approach this threshold, we could see increased selling pressure from LTHs, which could require strong buying demand to counteract,” Glassnode pointed out. This trend aligns with Bitcoin’s price hovering around the $99,900 mark, which has historically been a key point for long-term holders to start distributing their assets.

Meme Coin Buzz and Market Sentiment Shifts

Meanwhile, the meme coin market is seeing a resurgence. Santiment data shows that discussions around meme coins have hit a peak for 2025, suggesting that traders are once again turning toward higher-risk assets after a period of focus on more stable options like Bitcoin and ETFs. Despite this, the shift has not translated into sustained upward movement for all meme coins. For instance, GORK, a meme coin associated with an AI chatbot parody account recently mentioned by Elon Musk, failed to extend its rally, indicating that the enthusiasm for celebrity-backed assets may be waning.

As Bitcoin approaches critical price levels, all eyes are on the upcoming Fed meeting and macroeconomic developments. How the market reacts could set the tone for the coming weeks, with potential volatility driven by both technical and fundamental factors.