Bitcoin (BTC) is holding steady as markets await Wednesday’s Federal Open Market Committee (FOMC) meeting. With no rate cuts expected, Bitcoin is likely to continue trading sideways in the short term. However, technical indicators are pointing to a potential rally in the near term.

Markets Stabilize, No Big Moves
If the US stock market is any indication for Bitcoin, there is a good chance that there will be no big moves immediately after the FOMC meeting. All eyes will be on Fed Chairman Jerome Powell’s speech, as he could provide some insight into the market going forward.

According to data from CME’s FedWatch tool, markets are now pricing in a nearly 99% probability that the Fed will not cut rates. This may not be in line with the Trump administration's wishes, which is looking for a weaker dollar to support the economy. However, Powell appears to be sticking to his guns and will not adjust interest rates unless the US economy shows clear signs of weakness.

Will the S&P 500 Continue to Rise or Fall?

The S&P 500 had a positive session at the start of the week, closing in the green. However, the $5,670 level is acting as strong resistance. The price broke above this level but quickly pulled back and closed below this resistance level by the end of the day.

For the uptrend to continue, the S&P 500 needs to break back above this level and turn it into support. If that fails, the index could weaken and fall towards the next key support level at $5,400.

Given the strong correlation between Bitcoin and the US stock market, the performance of the S&P 500 after the FOMC meeting will have a significant impact on the direction of BTC.

Is Bitcoin Confirming an Inverse Head and Shoulders Pattern?
Bitcoin price has been stable over the past few days, with an inverse head and shoulders pattern slowly forming. Currently, BTC has broken above the neckline and is retesting this area. If this pattern is confirmed, a strong breakout could take the price above the descending wedge, towards the $94,600 area.

The $95,000 level will be a key hurdle, as it is not only the most recent swing high but also an area of ​​major resistance. A successful break of this level could pave the way for a further bullish move.

Bullish Trend on Weekly Timeframe
On the weekly timeframe, technical indicators are suggesting that Bitcoin may have established new support at $80,000. If this is indeed a short-term bottom, BTC may be preparing for the next bull run.

- Stochastic RSI: The indicator lines have crossed and the blue line is currently above the orange line. If the indicator continues to cross above 20.00, this will be a signal for a major bull run to come.

- Relative Strength Index (RSI): Bitcoin is bouncing from 44.00, a key support and resistance level in BTC's price history. The fact that the RSI is above this level suggests that the market is likely accumulating for a new bull run.

Is a Big Bull Run Near?
Technical indicators are starting to turn positive, suggesting that Bitcoin may soon begin a strong bull run. However, BTC’s recovery still depends on the stock market. If the S&P 500 maintains its upward momentum and breaks through a key resistance level, Bitcoin will likely continue its uptrend in the coming weeks.

Overall, investors should closely monitor the FOMC meeting and the stock market’s reaction to determine Bitcoin’s next move. Once favorable conditions converge, BTC could quickly move towards $94,600 – $95,000 and beyond in the near term.