Bitcoin fell back below $74,000 after posting gains for three straight days, giving up part of a rally that had briefly pushed it close to $76,000 on Tuesday. The asset was trading at $73,836 on Wednesday, down 2.7% from its local peak and still 24% below its year-to-date high.
The pullback came hours before the Federal Reserve was due to announce its latest rate decision at 2:30 p.m. UTC. According to the report, traders moved to lock in recent gains and shifted into a wait-and-see stance ahead of the event. Market expectations point to the Fed keeping rates unchanged in the 3.50% to 3.75% range, with the CME FedWatch Tool showing a 98.9% probability of no cut.
Profit-taking hits as macro event takes center stage
The article said inflation concerns have remained elevated, partly because oil prices moved above $100 per barrel during the ongoing U.S.-Iran war in the Middle East. That backdrop has strengthened the case for the Fed to leave rates unchanged. For Bitcoin and other risk assets, lower rates usually help sentiment, while a hold or hike tends to keep pressure on prices.
Even so, the market may have already priced in the Fed outcome. In that reading, Bitcoin’s decline does not automatically signal a broader reversal. It may reflect a pause before the market decides on its next move, similar to price action seen during previous periods of macro and geopolitical tension.
Spot ETF inflows remain a major source of support
One of the clearest supportive factors in the report is the continued demand for spot Bitcoin ETFs. Data from SoSoValue show that the 12 spot BTC ETFs have now logged seven consecutive days of net inflows, bringing in nearly $1.17 billion from institutional investors.
That flow matters. While Bitcoin lost the $74,000 level in the short term, sustained ETF demand suggests institutional interest has not faded, leaving room for a rebound if broader market conditions stabilize after the Fed decision.
Bullish breakout stays in play, with $76,000 in focus
On the daily chart, the report said Bitcoin has confirmed a move above the upper boundary of a symmetrical triangle, a pattern commonly viewed as bullish continuation. Price has also climbed above the Supertrend line, which has turned green, pointing to improving short-term momentum.
The Relative Strength Index has risen to 59, still below the 70 level often associated with overbought conditions. Traders are now watching $76,000, the area Bitcoin failed to clear during Tuesday’s advance. A break above that level could open the path toward the $80,000 psychological mark.
If the move weakens instead, $73,000 becomes the first key downside level. The report noted that a drop below it could shift sentiment and trigger a deeper retest of support near $71,000.