Bitcoin Faces Pressure Below $86K as Fed Dims Rate Cut Hopes – Key Levels to Watch

Bitcoin Faces Pressure Below $86K as Fed Dims Rate Cut Hopes – Key Levels to Watch

Fed Chair’s Comments Send Shockwaves Through Bitcoin Market

Bitcoin’s latest push above $86,000 was rejected once again on April 16, as U.S. Federal Reserve Chair Jerome Powell poured cold water on hopes for near-term interest rate cuts. The news left BTC/USD caught between bullish ambition and bearish pressure—trading in a tight range with key resistance levels above and multiple support zones below.

Since April 9, Bitcoin has failed to close above $86,000, despite multiple intraday attempts that have seen daily highs reach as far as $86,400. The lack of momentum has prompted traders and analysts to question: “Where does Bitcoin go next?”

What’s Driving Bitcoin Volatility Right Now?

Speaking at an event in Chicago, Powell reiterated a “wait-and-see” approach, insisting that more data is needed before the Fed adjusts its interest rate policy. He emphasized the economic uncertainty introduced by President Trump’s new tariffs, warning they could cause higher inflation and slower growth.

“The level of tariff increases announced so far is significantly larger than anticipated,” Powell noted.
“The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”

Powell’s insistence on keeping monetary policy restrictive in the face of potential inflation has weighed heavily on crypto markets. According to Polymarket, there’s now an 88% chance interest rates will remain between 4.25% and 4.50%, and only a 10% chance of a cut.

Meanwhile, President Trump slammed Powell’s remarks, calling the April 16 report a “mess” and threatening to terminate Powell, accusing him of always being “too late and wrong.”

BTC Price Action: Resistance Above, Support Below

Bitcoin is currently in a tug-of-war between bulls and bears, with a decisive breakout above $86K needed to fuel the next rally. Here are the key price levels to watch:

🔺 Upside Targets:

• $86,000: Immediate resistance; must flip to support.

• $87,740: 200-day EMA; lost in March for the first time since August 2024.

• $91,240: Heavy supply zone and 100-day SMA.

• $90,000 – $100,000: Bullish breakout zone with medium probability.

🔻 Downside Risk:

• $80,000: Psychological support.

• $76,000 – $74,000: Range lows from earlier in 2024.

• $67,817: Election Day support.

• $65,000: “True market mean,” according to on-chain analyst James Check.

“The $75,000 zone is an area where you want the bulls to mount a defense,” Check said on the TFTC podcast.
“If they don’t, the next step is a return to consolidation, and the flag in the sea of sand is $65,000.”

Interestingly, this $65K level also aligns closely with Michael Saylor’s average cost basis of around $67,500, adding further significance to the potential floor.

Bullish Bets Still in Play—but Fading

Despite Powell’s hawkish tone, optimism hasn’t completely dried up. Polymarket pegs Bitcoin’s chances of reaching $90,000 by April 30 at 46%, though the odds of a new all-time high above $110,000 remain under 5%.

The broader sentiment is cautious: while some believe the Fed’s restrictive stance has already been “priced in,” the lack of immediate upside and macroeconomic headwinds could keep BTC stuck in consolidation unless bulls retake control soon.