Bitcoin Breaks Down as FOMC Rate Decision Looms

The cryptocurrency market remains on high alert as it awaits the Federal Open Market Committee (FOMC) rate decision. In preparation for this announcement, traders have largely been holding back, waiting to see how the Fed's policy statement and Chairman Kevin Warsh's comments will impact markets.

This cautious approach is reflected in the Bitcoin price chart, which has seen a breakdown after weeks of consolidation. The key resistance level around $80K-$82K held firm when Bitcoin attempted to break higher earlier this month, leading to a decline below support near $76.2K.

Yesterday's price action saw Bitcoin give up its entire gains from Monday and some more. While the cryptocurrency has found temporary support in the $75K-$75.5K area, recent bearish price action suggests that selling pressure may resume later in the day.

If Bitcoin were to drop below the psychologically important level of $75,000, there would be limited support until around the 200-day moving average at $70,200-$300. Alternatively, a bullish reversal candle could signal a potential break higher, but this would require a clear break above major resistance.