Bitcoin Closes At $114,530 Amid FOMC Volatility: Bulls Eye $117,600 Resistance

Bitcoin weekly price forecast

Bitcoin price action was fairly weak last week, leaving traders guessing whether or not we will see another significant price drop over the weekend. However, the price settled above the lows, and slowly rose slightly to close the week at $114,530. The bulls should not be too disappointed by this price action, as they have reclaimed the $112,200 resistance level, and are now close to beating the next resistance level at $115,500. However, the bears are still comfortably in control, with stronger resistance levels above that the bulls have yet to challenge. This could be an interesting and volatile week, with the Federal Open Market Committee meeting on Wednesday and a slew of major companies reporting third-quarter earnings.

Key support and resistance levels now

Nothing has fundamentally changed from the resistance levels that emerged last week, as the bulls made little progress. Stiff resistance remains at $117,600 and $122,000 above that, so the bears are not feeling any real pressure yet. If by chance this week’s price breaks above $122,000, we will be looking at the upper bound of the expanding wedge pattern at $128,000.

Staying above the previous week’s low is a positive sign for the bulls, while they managed to keep the price above the key short-term support level of $106,900 last week as well. This level should hold going forward, as a close below $106,900 opens the door for a return to the $105,000-$102,000 support zone that has already been tested twice. A third test of this support area will be more likely to break it rather than hold it. $96,000 is long-term bull market support below here, and is a do-or-die support level if the price drops and tests it.

Forecast for this week

Expect big volatility this week, especially on Wednesday, as we have the Fed’s interest rate decision and Powell’s ensuing speech, followed by key earnings reports from Microsoft, Meta, and Google after the market closes. Bulls will look to hold $109,000 as a minimum for this week, as doing so would put them in a position to maintain bullish momentum. Looking at the momentum reversal indicator, we are currently sitting at 8 figures entering Monday. This is a warning candle that we may see momentum start to fade. On Tuesday it should reach 9, at which point we should expect at least a pause in the upward momentum and a one to four day price correction. So, if the bulls can push the price to the 0.618 Fibonacci retracement level at $117,600 by Monday night or Tuesday morning, we should expect to see a rejection there, and we could reevaluate after the FOMC and earnings reports come out on Wednesday.

Market mood: Bearish – While the bulls gained some ground last week, the bears remain pioneering and strong. The bulls must push the price above $122,000 to regain control.

The next few weeks
If the bulls can survive this week, there are still some potential headwinds on the horizon. The tariff dispute between the US and China may or may not be resolved by the end of next week; A negative outcome is likely to send all markets lower. In addition, US courts are expected to rule on the legality of Trump’s tariffs by November 5. If these tariffs are reimposed, we should expect markets to turn lower to price in this impact.

Terminology guide:

Bulls/bullish: Buyers or investors expect the price to rise.

Bears/Bearish: Sellers or investors expect the price to fall.

Support or support level: The level at which the price of an asset should remain, at least initially. The more it touches support, the weaker it becomes and the more likely it is to fail to hold the price.

Resistance or resistance level: In exchange for support. The level at which the price is likely to reject, at least initially. The more touches there are on resistance, the weaker it becomes and the more likely it is to fail to hold the price in check.

Fibonacci retracements and extensions: The proportions depend on what is known as the golden ratio, which is a global ratio related to the cycles of growth and decay in nature. The golden ratio is based on the constants Phi (1.618) and phi (0.618).

Widening wedge: A chart pattern consisting of an upper trend line that acts as resistance and a lower trend line that acts as support. These trend lines must diverge from each other in order to validate the model. This pattern is the result of widening price volatility, which typically results in higher highs and lower lows.

Momentum Reversal Index (MRI): Special indicator created by Tone Vays. The MRI indicator tracks buyer and seller momentum and exhaustion, providing signals to indicate when momentum is expected to fade and accelerate.