Bitcoin in a correction ahead of the FOMC…If $112,000 holds as support, a break above $120,000 is possible

The price of Bitcoin (BTC) is hovering around $112,000 ahead of the US Federal Open Market Committee (FOMC) results. Experts interpret this decline as a normal pre-FOMC adjustment and analyzed that a break above $120,000 could open a mid-term target of $143,000.

On the 29th (local time), according to CoinDesk, Bitcoin was trading at $112,637 as of 3:45 a.m. After a short-term surge the previous day it rose to $116,094, but selling pressure intensified and it fell back near the resistance at $116,000. Afterwards, buying flowed in at $112,500, limiting the decline.

On-chain data analytics firm Glassnode analyzed that recent buying has concentrated near $111,000, while selling has gathered near $117,000. In other words, $111,000 is acting as a buyer support zone, and $117,000 is functioning as a resistance zone where profit-taking occurs.

Analyst Ali Martinez said, "If Bitcoin breaks above $120,000, it can rise to the mid-term target of $143,000," and added, "There is less historical supply above this range, so technical resistance that would stop further rises is reduced." He added that, based on a band chart derived from on-chain long-term average price levels, $120,000 could be a mid-term turning point.

Trader Michaël van de Poppe described this adjustment as a "temporary bottom confirmation process." He said, "As long as the $112,000 support holds, the uptrend remains valid, and this decline can be seen as a simple bottom-checking phase." According to his analysis chart, the short-term support is $112,000 and resistance is in the $115,600–$116,200 range.

According to CoinDesk's research team's technical analysis model, Bitcoin's volume spiked to 174% of the average over the day on the 28th and rose to $116,094, but then adjusted to $112,500 due to selling pressure. In the short term, the price is likely to move in a box range between $111,000 and $117,000.

The market regards the FOMC meeting results on the 29th (US time) as a key variable that will determine short-term direction. Observations are prevalent that Fed Chair Jerome Powell is likely to cut the policy rate by 0.25%. If a dovish easing stance is maintained, Bitcoin's rebound potential could increase, but if rates are left unchanged or hawkish comments emerge, short-term adjustments could deepen.

The market's key current support is $112,000, and the main resistance is in the $116,000–$120,000 range. A break above $120,000 would open the potential for a rise to $143,000, but if $112,000 breaks, a test of the $111,000 support is possible.