Bitcoin Price Struggles with Bull Flag as Fed Interest Rate Decision Looms

The Bitcoin price has closed below $77K in the weekly chart, but still holds its current support floor of $76K.

Despite a lackluster close, the BTC price is trying to bounce back on Monday morning. However, with the Federal Reserve's interest rate decision scheduled for Wednesday and a 25 basis point hike expected by the market, there are concerns that the Bitcoin price may drop out of its bull flag and head back down to the lows.

In the 4-hour chart, the BTC price action looks bullish. The price has come back down to the bottom of the parallel channel, bounced, and broken out of a small descending trendline. This breakout is confirmed by two new candles opening above the trendline.

The short-term targets are $78,900 and then $79,500. However, in the daily time frame, a head and shoulders pattern may be forming, which could potentially lead to a price drop if a right shoulder forms over the next few days.