Bitcoin Chases $72K After Fed Decides To Hold Rates: Is BTC Selloff Over?
BTC's start to the week stalled on Wednesday, as BTC fell 3.4% to $70,900 amid a broad sell-off in US stocks.
The correction followed a better-than-expected producer price index (PPI) report, which came in at 3.4%, higher than the year-on-year estimate of 0.7%.
Despite the selloff, spot demand remained steady as buyers pulled pressure and pushed Bitcoin above $72,000 after the Fed signaled it would hold rates.
Market volatility in oil prices, equity markets, and ongoing tensions over the recent U.S.-Israeli-Iran war kept traders on edge while the market consensus leaned toward the Fed opting to hold off on interest rate changes.
Bitcoin bulls should defend against these price levels
On the four-hour chart, Bitcoin is showing a higher-lower pattern, maintaining a short-term uptrend. The price action holds above both the 100 and 200-time exponential moving averages (EMAs), which act as dynamic support.
These moving averages track average prices over time and when they line up below the price, they define the direction of the trend.
The combination could allow BTC to stabilize around $71,000, forming a potential base after today's selloff.
From a technical point of view, BTC needs to defend the $70,250 to $71,275 range, which indicates the internal liquidity levels built during Monday's break.
This zone represents areas where orders have previously been filled, possibly attracting liquidation sweeps again.
Missing this range would expose the next pocket of liquidity around $68,900. That level is consistent with a small order block between $68,300 and $69,100, where early demand took short-term selling pressure.
Sustaining these levels would give the lower timeframe trend a structural advantage for BTC, indicating that higher lows will continue to demand dips.
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Bitcoin's profit taking meets the bid below $74,000.
Ahead of today's correction, Bitcoin onchain data indicated increasing sell-side activity from short-term holders (STHs) on Tuesday. According to crypto analyst Darkfost, more than 48,000 BTC profit was moved to exchanges in one day as the price neared $75,000. This suggests that buyers continue to lock in profits, viewing price corrections as exit opportunities.
At the same time, CoinGlass data showed that bids were flooded during the drop from $74,000 to $71,000. Over the past two weeks, similar absorption patterns have preceded short-term recoveries, indicating continued demand for lower levels.
Meanwhile, BTC's response to previous Federal Reserve meetings has increased awareness. According to market analyst Sherlock, regardless of the rate direction from June 2025, Bitcoin has declined after the last six Federal Open Market Committee (FOMC) meetings.
With market prices holding on to other interest rates, traders' attention may shift to how Bitcoin's price reacts around current liquidity levels, particularly near $71,000.
RELATED: Bhutan Loads More $72.3M in Bitcoin Amid Market Crash
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