Bitcoin price stabilizes around $113,500 following a steep 4% slump earlier this week, with traders becoming cautious before the U.S. Federal Reserve’s FOMC meeting minutes. The fall comes after massive institutional outflows, with spot Bitcoin ETFs seeing more than $520 million flow out on Tuesday, indicating diminishing demand. Sentiment in the market remains weak, as above-anticipated U.S. Producer Price Index (PPI) readings created inflationary fears, adding pressure to risk assets. With BTC below its 50-day EMA and exhibiting bearish technical indicators, the next Fed minutes might serve as a key catalyst, capable of inspiring fresh volatility in the world’s largest cryptocurrency.
KEY LOOKOUTS
• Participants are eagerly awaiting hints on the rate outlook of the Fed, which may fuel short-term volatility in Bitcoin.
• Over $520 million left Bitcoin ETFs, indicating institutional investor demand waning.
• BTC fell below its uptrend line and 50-day EMA, increasing the risk of lower prices.
• The nearest support is around $111,980, and bearish momentum is supported by an RSI under 50 and a bearish MACD crossover.
Bitcoin is hovering consistently at $113,500 following a recent 4% decline, as investors hold back for the release of the Federal Reserve’s FOMC meeting minutes for new policy cues. The decline follows weak institutional demand, with spot Bitcoin exchange-traded funds recording more than $520 million in outflows on Tuesday alone. Technically, BTC has fallen below its rising trendline and the 50-day EMA and is heading towards a possible downside risk at the $111,980 support zone. With bearish momentum shown in the RSI and MACD indicators, investors are preparing for increased volatility based on the Fed’s expectations regarding interest rates.
Bitcoin trades close to $113,500 after a steep fall, with market participants looking for policy direction from the Fed’s FOMC minutes. Bearish technical indicators and institutional outflows impinge on sentiment, making BTC susceptible to further volatility on the downside.
• Bitcoin price finds balance at $113,500 after falling 4% earlier this week.
• Spot Bitcoin ETFs had more than $520 million of outflow on Tuesday, indicating weakening institutional demand.
• BTC dipped below an uptrend line and the 50-day EMA ($114,910), generating bearish indicators.
• The Relative Strength Index (RSI) stands at 42, below neutral 50, showing bearish momentum.
• MACD indicates a bearish crossover, corroborating the bear trend.
• Support is seen near $111,980, while increased open interest increases the possibility of squeezes.
• Market attention continues to be on the FOMC meeting minutes, which may trigger new volatility in BTC.
Bitcoin is stabilizing around $113,500 as investors turn their focus to the next FOMC meeting minutes, which should give new signals regarding the Federal Reserve’s monetary policy roadmap. The cryptocurrency market has been highly reactive to U.S. economic data and Fed communications, and investors are keenly observing if the policymakers will give any indication of an easing path or be conservative. The publication of the minutes later today may dictate market mood and induce fresh action across risk assets, including Bitcoin.
BITCOIN DAILY PRICE CHART
SOURCE: TradingView
On the other hand, institutional demand for Bitcoin remains indicative of weakness. Information points out that spot Bitcoin ETFs experienced over $520 million in outflows on Tuesday, the third consecutive day of noticeable withdrawals. Analysts note that steady negative flows from institutional products have the tendency to erode market confidence, indicating that significant investors are still uncertain regarding near-term prospects. This change in demand patterns reflects the impact of macroeconomic factors and regulatory expectations in the direction of Bitcoin’s market path.
TECHNICAL ANALYSIS
Bitcoin has fallen through its uptrend line and dropped below the 50-day Exponential Moving Average (EMA) at $114,910, indicating weakening price structure. The Relative Strength Index (RSI) of 42 is below the neutral 50 level, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) also recently created a bearish crossover, reinforcing the bearish outlook. If there is continuing selling pressure, BTC may probe its next major support level around $111,980, while resistance is observed in the $114,900–$115,000 range.
FORECAST
If the FOMC meeting minutes confirm dovish guidance or suggest rate cuts in the future later this year, then Bitcoin may regain bullish momentum. A positive macro expectation should attract institutional inflows at the expense of the recent outflows from ETFs, fueling investors’ confidence. Under these circumstances, BTC may try to reclaim the $114,900–$115,000 resistance zone, and a sustained breach above this hurdle may set the path for further gains toward $117,500 and higher levels.
Conversely, if the Fed minutes turn hawkish, confirming the sustainability of higher interest rates, then Bitcoin may face fresh selling pressure. Institutional redemptions coupled with waning market sentiment may pull prices down, challenging the near-term support at $111,980. A clear break below this level would trigger further downside towards the $110,000 psychological level, with more losses leaving BTC vulnerable to deeper correctives.
