Bitcoin Falls Ahead of Fed Decision as Market Awaits Interest Rate Clarity

Bitcoin's attempt to break above $65,650 failed as it retreated lower on Wednesday ahead of the highly anticipated Federal Reserve interest rate decision. The cryptocurrency struggled to maintain its momentum and dropped below several key levels, sparking concerns about a potential sharp decline.

The 4-hour chart of BTC/USD showed a bearish trend line forming with resistance at $64,500. Ethereum also faced challenges in breaking above $1,920 and dipped from the resistance level. The market's focus is on the Fed's decision, which is expected to remain unchanged at 3.75%.

Bitcoin's price action was particularly concerning as it settled below the 100 simple moving average (red) and tested the 200 simple moving average (green). If the bears continue to dominate, a sharp decline could be triggered, with potential targets at $61,200 or even $60,500. On the upside, any gains would likely face resistance at $64,200, followed by the bearish trend line and main resistance at $65,650.