Despite a recent policy shift by the Federal Reserve, Bitcoin (BTC) has shown a muted immediate reaction, maintaining a position just above $111,000 as traders assess the implications of a softer monetary stance. The Federal Open Market Committee (FOMC) decision was accompanied by comments from Chair Jerome Powell, who characterized the move as part of a "data-dependent" approach. While Powell acknowledged easing inflation pressures, he stressed the central bank's cautious approach to further rate reductions, a tone interpreted by markets as cautiously dovish.
Muted Reaction, But Macro Winds Are Shifting
Bitcoin had already experienced a pullback from its recent local high near $116,000 in anticipation of the FOMC meeting. Wednesday's announcement did little to disrupt its narrow trading range, with the price continuing to oscillate between $110,500 and $113,000, indicating consolidation rather than immediate breakout momentum. Analysts suggest that this subdued reaction may be attributed to the rate cut already being priced into the market. The prevailing question, according to market observers, is whether the Fed's signal of gradual easing will eventually stimulate risk appetite later in the quarter.
A Calm Pullback Before Potential Upside
Market strategists largely concur that the recent decline does not signify a trend reversal. They note that this pattern is common before significant macroeconomic events, as traders often secure profits, reduce leverage, and await greater clarity. One analyst commented that a dovish tone from Powell could trigger the next phase of the rally, whereas a hawkish stance might lead Bitcoin to test lower levels before a rebound.
Ali Martinez: Watching the Liquidity Gap Above $120K
On-chain strategist Ali Martinez posits that Bitcoin's next significant price movement will hinge on its ability to surpass the $120,000 mark. He identifies a "liquidity vacuum" above this level, characterized by thin resistance, which could facilitate rapid price acceleration. Martinez explained that there is minimal resistance between $120,000 and $143,000, suggesting that a clean break could prompt momentum traders to enter aggressively, potentially pushing the price toward the $143,000 zone in a short timeframe. For Martinez, the current correction is a "breather before the next expansion phase," provided Bitcoin maintains its position above key structural support levels.
"Between $120K and $143K, there isn’t much friction. If Bitcoin manages a clean break, momentum traders could step in aggressively, pushing it toward that $143,000 zone in a short period."
Bitcoin $BTC needs to break above $120,000 to open the path toward a new all-time high of $143,000, according to the Pricing Bands. pic.twitter.com/hFuFKQ7OIF
— Ali (@ali_charts) October 28, 2025
Michaël van de Poppe: Holding $112K Keeps the Trend Alive
Analyst Michaël van de Poppe views the market's recent price action as a textbook example of pre-FOMC positioning, asserting that Bitcoin's behavior remains consistent with an ongoing uptrend. He highlights the $112,000 area as a strong support zone where buyers have repeatedly intervened. Van de Poppe believes that as long as Bitcoin stays above this level, the uptrend remains intact. He also noted that the dip preceding the meeting is normal and that clearing the resistance region around $115,600–$116,200 could initiate the next impulsive wave almost immediately.
"The dip we saw before the meeting is normal. If Bitcoin clears the resistance region around $115,600–$116,200, the next impulsive wave could begin almost immediately."
So far, so good for #Bitcoin .
Retest of the lower levels to find buying pressure and that's, with a weak bounce, been found.
Volatility should be going up enormously today as the FOMC event kicks in, and I would, again, urge nobody to trade leverage on a day like this if… pic.twitter.com/etO845EBmS
— Michaël van de Poppe (@CryptoMichNL) October 29, 2025
Alex Kuptsikevich: Technical Picture Remains Strong
From a macro-technical standpoint, FxPro senior analyst Alex Kuptsikevich noted that Bitcoin continues to trade comfortably above its 200-day Simple Moving Average (SMA). He views this alignment as indicative of sustained strength rather than market exhaustion. Kuptsikevich observed that Bitcoin has recovered from the $108,000 level and maintains an uptrend. He considers the $117,000 to $120,000 resistance zone as the next significant test, with a decisive breakout confirming the dominance of the bullish structure. Kuptsikevich characterized the current phase as a "controlled consolidation" rather than a reversal, pointing out that most long-term trend indicators remain positive.
"Bitcoin has recovered from $108,000 and continues to trade comfortably in an uptrend. The real test now is the $117,000 to $120,000 resistance zone. A decisive breakout would confirm that the bullish structure remains dominant."
Timothy Misir: Support Cluster Between $111K–$112K
BRN analyst Timothy Misir employed cost-based heat maps to identify critical zones of buying and selling activity. His analysis indicates that the $111,000–$112,000 range has formed a dense support cluster, with $117,000 serving as the immediate ceiling. Misir stated that Bitcoin's price is coiling within a tight band and that a decisive breakout above the upper resistance could trigger the next leg of the bull market. Conversely, a failure to hold the lower support band risks a slide below $110,000 before stability is re-established. Misir believes that short-term volatility surrounding macroeconomic events often shakes out weaker traders, creating accumulation opportunities for long-term investors.
"Bitcoin’s price is coiling in a tight band. If bulls manage to break that upper resistance decisively, it could unleash the next leg of the bull market. Failure to hold the lower band, on the other hand, risks a slide below $110,000 before stability returns."
Fed Cut May Set the Stage, But Patience Is Key
While the immediate market reaction to the Federal Reserve's rate cut was subdued, analysts concur that the long-term implications are significant. A sustained easing cycle could lead to lower real yields and an increased appetite for non-yielding assets like Bitcoin, a pattern observed during previous periods of expanding liquidity. Currently, Bitcoin's technical posture remains neutral to bullish, with strong support near $111,000, major resistance around $117,000, and a potential breakout zone near $120,000. Analysts suggest that if macroeconomic sentiment continues to improve, a breakout could occur sooner than anticipated. As one strategist put it, "This wasn’t the spark – it was the match being lit. The fire will come later."