Will Fed Rate Affect Bitcoin Price?

On January 29, the Federal Reserve announced that interest rates would remain steady at 4.50%. This decision was widely expected, given that inflation is nearing the 2% target and the labor market remains stable.

With these favorable economic conditions, there is growing anticipation that Bitcoin and the broader cryptocurrency market could experience further growth.

4-hour time frame analysis

BTCUSD 4 Hour Time Frame

From a technical analysis perspective, Bitcoin has successfully closed above the previous resistance zone, which had previously acted as a major barrier to further price increases.

Before this breakout, the price dipped below a significant low, signaling a process of liquidity selection—a phase where a large volume of orders aligns, paving the way for stronger price movements.

This development creates a potential opportunity to initiate buy positions. However, traders must strictly follow risk management rules to ensure their strategies remain well-calculated and controlled.

Bitcoin price target

A core principle of effective trade management is placing a Stop-Loss order below the internal higher low. This approach allows the trade to develop while minimizing the risk of premature exits caused by normal market fluctuations.

For profit-taking objectives, traders could set Take-Profit levels at key Buy-Side Liquidity points. Additionally, incorporating psychological price levels—such as $112,000 and $115,000—can enhance the strategy. These levels often act as natural consolidation points, making them strategic targets for securing profits.