Bitcoin Steadies Near $113K as Traders Await FOMC Minutes for Fed Policy Guidance

Bitcoin (BTC/USD) is consolidating near $113,000 in Wednesday’s session, stabilizing after a sharp 4% decline over the past two days. The drop was fueled by weakening institutional demand, with spot Bitcoin ETFs recording over $520 million in outflows on Tuesday. Earlier in the session, BTC briefly dipped to $112,732 before rebounding modestly.

Fundamental Overview: Macro Headwinds and Fed Focus

The latest downturn followed stronger-than-expected U.S. Producer Price Index (PPI) data last week, which highlighted rising inflationary pressures. Higher inflation reduces the likelihood of aggressive rate cuts, weighing on risk assets such as Bitcoin and equities.

For professional traders, the next catalyst comes from the release of the FOMC meeting minutes later today. The report is expected to provide deeper insight into the Federal Reserve’s policy stance and potential rate-cut trajectory. Any hawkish tilt could add fresh pressure to Bitcoin, while dovish commentary may fuel a short-term rebound.

BTC/USD Technical Analysis (H4 Chart)

• Trend: BTC/USD remains within a broader up channel, but recent weakness has dragged prices below the 10 & 50-period SMAs, signaling short-term downside pressure.
• Momentum Indicators:
  • RSI remains in the bullish zone, suggesting underlying demand despite pullbacks.
  • Stochastic oscillator points to a neutral trend, reinforcing consolidation.
• Key Levels:
  • Immediate Resistance: 116,460
  • Immediate Support: 109,244

How to Trade BTC/USD

Bitcoin’s surge earlier this month faced stiff resistance, prompting a corrective pullback. The pair is now approaching a critical support level near 109,244. If this zone holds, the bullish channel structure remains valid, opening the door for renewed upside.

• Trade Suggestion:
  • Entry (Limit Buy): 110,543
  • Take Profit: 115,809
  • Stop Loss: 107,924

A decisive break below support could trigger deeper losses toward $108,000–107,500, while a bounce above resistance at 116,460 would confirm renewed bullish momentum, targeting 118,500–120,000 in the short term.

Key Takeaways for Professional Traders

• Bitcoin price forecast (BTC/USD): Consolidating near $113K after recent declines.
• ETF outflows: $520M in redemptions highlight fading institutional demand.
• Macro driver: Stronger U.S. PPI weighs on risk assets amid inflation fears.
• Event risk: FOMC meeting minutes could drive short-term volatility in BTC.
• Technical bias: Still bullish within an up channel, but support at 109,244 is crucial.