4 min readYesterday, Bitcoin staged a dramatic move higher following the release of the FOMC meeting minutes. The minutes carried a broadly neutral tone, signaling no urgency from the Federal Reserve to adjust interest rates in either direction. Markets interpreted this as supportive for risk assets, triggering rallies across equities and crypto.
For Bitcoin, the reaction was sharp and immediate, with the initial push higher activating what appears to have been a massive short squeeze. This sent the price into price discovery, briefly setting new all time highs above 112,000 USD. However, the move was short lived and Bitcoin quickly pulled back, retracing into its previous trading range and leaving a notable rejection on the daily candle.
The question now is whether this was the start of a bigger breakout or simply a fakeout above range highs.
Looking at the daily chart, Bitcoin remains inside a well defined range with range lows around 98,000 and range highs near 112,000. The latest breakout attempt above the range highs now looks like a possible deviation as the price has fallen back inside the range boundaries.
What is clear is that the recent move has created a very interesting area of confluence below, marked with the number one on the chart at approximately 109,500 USD. This zone lies between the 50 percent and 0.618 Fibonacci retracement levels of the latest up move and also aligns with a horizontal level that has acted as resistance in the past.
If Bitcoin starts to trade lower from here, this area becomes a key reload zone to watch for potential support and a possible springboard for a new move higher.
Trading involves risk.
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