Bitcoin Price Forecast: Will BTC Dip Below $90K Ahead of Federal Reserve Meeting?

Bitcoin’s Recent Price Movement

On Monday, Bitcoin (BTC) experienced a notable decline, slipping below the $95,000 mark. Traders are now closely monitoring the potential for a further retreat towards $90,000 or lower. This pullback comes after a robust two-week rally, during which Bitcoin briefly surged past $98,000, capturing the interest of both retail investors and institutional flows.

Technical Analysis and Market Sentiment

Despite the recent rally, several analysts are sounding alarms regarding a confluence of technical and macroeconomic risks that could exert additional pressure on Bitcoin prices. Alex Kuptsikevich from FxPro noted, “We’re back at a key resistance zone that acted as support from December to February.” He added that the next downside targets for Bitcoin are $92,500 and $89,000. A significant break below $90,000 could be detrimental, pushing Bitcoin under the crucial 200-day moving average.

Influence of U.S.-China Tariff Talks

Traders are currently focused on the ongoing U.S.-China tariff negotiations, as these discussions have historically influenced Bitcoin prices. Additionally, the upcoming Federal Reserve meeting is creating a buzz in the market. While the Fed is anticipated to maintain steady interest rates, traders are keenly awaiting comments regarding economic projections and potential future rate cuts.

The Fed’s Economic Projections

QCP Capital, based in Singapore, observed that the combination of solid economic data and optimism regarding easing trade tensions has enabled markets to rebound from the recent post-Liberation Day selloff. They stated, “Although PCE data shows that inflationary pressures are easing, heightened import tariffs risk reigniting price instability.” The big question remains whether the Federal Reserve will continue resisting political pressure from Trump to lower rates or consider a shift in their monetary policy stance.

Spot Bitcoin ETFs and Market Dynamics

Despite the short-term pullback in Bitcoin’s price, spot Bitcoin Exchange-Traded Funds (ETFs) are witnessing significant inflows. Last week alone, net inflows totaled a staggering $1.81 billion, according to data from SoSoValue. However, on-chain indicators suggest that caution may be prudent for traders. Glassnode highlighted that the cumulative unrealized gains for long-term Bitcoin holders have surged to nearly 350%, a level historically associated with heavy profit-taking phases.

Meme Coin Trends and Market Sentiment

Recent data from Santiment reveals that discussions around meme coins have reached a peak not seen since 2025, indicating that traders may be shifting back to higher-risk assets after months of focusing on major cryptocurrencies and ETFs. However, this shift has not translated into sustained upward momentum across the board. For example, GORK, a meme coin linked to an AI chatbot parody account that gained attention from Elon Musk, failed to extend its gains despite the spotlight, suggesting that the trend of celebrity-driven price surges may be waning in the current market environment, as reported in Monday’s Crypto Daybook.

Conclusion: What Lies Ahead for Bitcoin?

As traders navigate this complex landscape, the upcoming Federal Reserve meeting and developments in U.S.-China tariff talks will play pivotal roles in determining Bitcoin’s trajectory. With the possibility of Bitcoin sliding below $90,000 looming, market participants must stay vigilant and informed about the broader economic trends influencing cryptocurrency prices.

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For those interested in learning more about Bitcoin, its investment strategies, and the broader cryptocurrency landscape, check out our guides on how to buy Bitcoin, or explore the world of cryptocurrency trading.