Bitcoin Price Prediction for this Week

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Bitcoin has been going through big price swings, recently dropping below $77,000 before bouncing back to around $83,000. These moves have been caused by regulatory issues, economic uncertainty, and large market liquidations. However, all eyes are now on the upcoming Federal Open Market Committee (FOMC) meeting, which could significantly impact Bitcoin’s price this week.

What to Expect from the FED Meeting

Scheduled for March 19, the meeting is expected to provide insights into the Federal Reserve’s stance on interest rates for February. Current expectations suggest that the FED will keep interest rates unchanged, maintaining the benchmark rate at 4.25% to 4.5%, just as it did in January.

FED Chair Jerome Powell and other officials have hinted at a cautious approach to rate adjustments, especially given the ongoing economic uncertainties. Key concerns include potential inflation risks and the impact of President Donald Trump’s trade policies. 

If the FED confirms that rates will stay the same, it could signal a stable economic outlook, which may drive investor confidence in riskier assets like Bitcoin.

Bitcoin’s Price Reaction: Bullish or Bearish?

If the FED decides to hold rates steady, analysts predict a bullish wave could hit the market, pushing Bitcoin toward its next resistance level of $95,000.

Meanwhile, CryptoQuant analyst Darkfost has noted that Bitcoin’s open interest has reached $33 billion, showing that a large amount of leverage is in play. This means investors are making big bets on Bitcoin’s next move. 

On the other hand, crypto analyst Benjamin Cowen has warned that recent political uncertainty has triggered liquidations, creating short-term price drops.

And if Bitcoin falls below its 2024 highs of around $70,000, it could repeat a past cycle seen in 2017, where Bitcoin retested the previous year’s highs before dropping further.