The $BTC has stabilized around $77,000 this Wednesday, as traders cautiously await the U.S. Federal Reserve's monetary policy decision while assessing the impact of a potential prolonged U.S. blockade on Iran.
The biggest cryptocurrency in the world was trading up 0.5%, at $76,614, at 11:47 AM (Brasília time).
"The $78,000 to $79,500 zone has emerged as a significant technical barrier, with profit-taking repeatedly capping the gains," said analysts from IG in a note.
"This resulted in a familiar pattern of sharp highs followed by consolidation, highlighting a market that is improving but not yet fully trending," they added.
The Fed's decision is approaching; Trump plans a prolonged blockade of Iran.
Markets widely expect the Fed to keep interest rates unchanged this Wednesday, but they will be scrutinizing the guidance for hints on the monetary policy path amid rising oil prices.
The meeting is also seen as potentially the last presided over by Jerome Powell, with former Fed governor Kevin Warsh viewed as a leading successor.
Geopolitical developments further clouded the outlook. A Wall Street Journal report indicated that U.S. President Donald Trump instructed advisors to prepare for a prolonged blockade of Iran, opting for sustained economic pressure rather than renewed military escalation or disengagement.
The report followed Washington's rejection of an Iranian three-step proposal earlier this week that would have reopened the Strait of Hormuz while delaying nuclear negotiations, with U.S. officials considering it insufficient.
Oil prices surged above $110 a barrel amid rising tensions, fueling fears of higher global inflation.
Market positioning also appeared shaky, with over $290 million in crypto liquidations reported in the last day.
Analysts noted that Bitcoin remained range-bound, with resistance near the $80,000 level continuing to cap gains, while support around $76,000-$77,000 was seen as critical in the short term.
Today's crypto prices: altcoins are held back in a risk-averse mood; DOGE jumps 7%.
Most altcoins traded in tight ranges this Wednesday.
The second-largest cryptocurrency in the world, #Ethereum ($ETH ), rose about 1% to $2,297.92.
The world's third-largest cryptocurrency, XRP, showed little variation at $1.37.
Solana and Cardano each gained 0.4%, while Polygon traded flat.
Among meme tokens, #Dogecoin ($DOGE ) surged over 7%.
