Bitcoin Price Retests Key Support as FOMC Decision Looms – Will Bulls Take Control?

Bitcoin (BTC) price has been experiencing increased volatility due to escalating tensions in the Middle East. The flagship coin dropped by as much as $103,396 on Tuesday, causing a similar movement in the wider altcoin market.

This heightened volatility led to over $513 million being liquidated from the crypto-leveraged market, with long traders accounting for $421 million of that amount. Despite this, crypto traders remain optimistic about a potential bullish rally, as indicated by the BTC fear and greed index hovering around 68 percent.

Bitcoin Demand Remains Strong

As Coinpedia has previously highlighted, institutional investors continue to show a high demand for Bitcoin. Despite the short-term bearish outlook, the Bitcoin balance on centralized exchanges has dropped to about 2.08 million from 2.26 million on April 24, 2025.

U.S. spot Bitcoin ETFs and institutional investors, led by Strategy and Metaplanet, are major contributors to the decreasing supply of BTC on centralized exchanges. Over the past five days, U.S. spot BTC ETFs have seen a net cash inflow of approximately $1.46 billion, with BlackRock’s IBIT leading the way.

What Next for BTC Price?

Despite the choppy market conditions, BTC price has been forming a bullish continuation pattern. After a 5 percent drop in the past 24 hours to test a crucial support level around $103k, BTC price has rebounded by over 1 percent to trade around $105k on Tuesday, during the mid-North American trading session.

On the two-hour timeframe, BTC price retested a bullish breakout from a falling logarithmic trendline. The Relative Strength Index (RSI) for BTC in this timeframe is hovering around oversold levels, indicating a potential rebound in the near future.

However, if BTC price consistently closes below the support range between $103k and $101k, it could lead to further bearish sentiment in the coming weeks.