Bitcoin Hits Key Resistance as Fed Rate Decision Looms

Bitcoin's price has pulled back as it encounters key valuation hurdles, while gold struggles to gain momentum ahead of the US Federal Reserve's monetary policy decision. The central bank is expected to raise interest rates to 3.75%-4.00% on Wednesday, potentially weighing on risk assets.

CryptoQuant analysts point out that Bitcoin has historically broken above its 365-day Moving Average (MA) at $81,700 to kick off a bull market, and closing below it has often marked the start of bear markets. Currently, the nearest resistance band falls between $77,000 and $80,000.

Bitcoin retains a neutral but firm bias, trading near the short-term $76,000 support. The largest cryptocurrency by market capitalization holds above the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs) clustered between roughly $71,300 and $73,500.

Gold has declined for the second consecutive day as focus remains on the Federal Open Market Committee (FOMC) meeting. The metal trades lethargically below $4,300 while holding above a short-term $4,250 support.