Fed Week Drama: Will Bitcoin Fall First and Explode Later?

Bitcoin continues to trade above $115,000 after breaking a key resistance in the past few days. With the Federal Reserve’s next policy meeting approaching, attention has shifted to a potential pullback.

Traders are watching the $111K–$113K area as a possible support zone. The current setup could offer a new entry before the next leg up.

BTC Holds Above Breakout Zone

Bitcoin crossed the $112,000 level late last week, breaking through a resistance level that had held for several weeks. Michaël van de Poppe commented,

Over the past 24 hours, though, BTC has remained steady in the $115,000 range.

If the asset retraces in the short term, the $111,000–$113,000 zone is expected to be tested. This range is now viewed as support after acting as resistance during the recent move up. Market participants are watching this level closely ahead of the FOMC announcement.

Notably, the next resistance sits between $119,500 and $120,000. If Bitcoin can move through this area, it may challenge its previous all-time high near $124,100. Some traders expect this to happen in early November.

Ted stated,

BTC has also closed above its 20-week moving average, which is viewed as a longer-term trend marker, according to Benjamin Cowen.

CME Futures Gap Near Support

A price gap has formed on the CME Bitcoin Futures chart between $111,800 and $113,800. The move followed a weekend rally after reports of progress in US–China trade discussions. These gaps appear when Bitcoin trades outside CME market hours.

Daan Crypto Trades noted, “These have been getting closed within a few days,” but added that he only watches them closely when the price nears the zone. Bitcoin is currently within 2–3% of the gap, making it a point of interest for short-term traders.

On-Chain Cost Zones Hold

Bitcoin is trading above wallet entry levels for new and short-term holders. These include cost basis levels between $110,000 and $113,000. Staying above them puts many recent buyers in profit.

CryptoQuant analyst Crazzyblockk reported that nearly 7 million BTC are now back in profit. This includes 5.1 million held by wallets under six months and another 1.8 million by newer participants. Profitability at this scale tends to increase holding strength and reduce early selling pressure.

Moreover, in 2025, long-term Bitcoin holders are becoming active again. As CryptoPotato recently reported, data shows that 270,000 BTC, previously untouched for over seven years, have moved this year. That number has already passed 2024’s full-year figure of 255,000 BTC and is far above 2023’s 59,000 BTC—with two months still to go.

The post Fed Week Drama: Will Bitcoin Fall First and Explode Later? appeared first on CryptoPotato.