Bitcoin Price Action Remains Choppy Ahead of Fed Rate Decision

Bitcoin's price action remains a mixed bag as September begins, with immediate support at $77,700 and resistance in the near future around $79,200-$79,400.

The 1-hour chart shows two failed runs toward $80,800-$81,400 since August 23, along with several wicks into $76,800-$77,200. Bitcoin's price bounced toward $79,200 before sellers pushed it back near the $77,800 range.

On the 4-hour chart, the current candle started at $78,605 and dropped to $77,767 before hovering around $77,832, leaving it 0.98% below its opening price. Buyers repeatedly showed up around $77,000-$77,700, with a middle zone around $78,500-$79,000.

Bitfinex analysts believe that the market is driven by spot buying, and despite large short liquidations, open interest has only gradually increased. They also note that institutional demand may be soaking up supply from large holders, giving bitcoin some extra protection against short-term selling.