Bitcoin Faces Key Support and Resistance Challenges

Bitcoin's Current Market Position

Bitcoin, the largest cryptocurrency by market capitalization, is navigating a precarious situation. Its price is hovering away from a crucial support zone, identified between $22,785 and $23,595, where 1.34 million wallets collectively hold 450,000 BTC. At the same time, the cryptocurrency is encountering significant resistance between $26,000 and $28,250, with 5.18 million wallets having purchased 2.1 million BTC in this range.

Anticipation of Federal Reserve's Decision

The crypto market is currently in a state of indecision, largely influenced by the upcoming Federal Open Market Committee (FOMC) meeting. Scheduled for Wednesday, the meeting will reveal the U.S. Federal Reserve's interest rate decision. Market participants are expecting a "hawkish" pause, suggesting that while rates might remain steady, future hikes are still possible. This anticipation is contributing to the neutral price action seen in the crypto market.

On-Chain Activity and Market Behavior

According to blockchain analytics, on-chain settlement activity remains subdued, with transfer volumes trading at cyclical lows of approximately $2.85 billion per day. This stagnation in transfer volume reflects the indecisive market behavior currently observed.

Decline in Bitcoin Exchange Supply

Recent data highlights a notable decrease in Bitcoin's presence on cryptocurrency exchanges, reaching its lowest since February 2018. This trend intensified after the SEC's legal actions against major exchanges like Coinbase and Binance, resulting in 6.4% of Bitcoin's supply exiting exchanges over the past week.

Overall, Bitcoin is navigating a challenging landscape of support and resistance levels amid broader market uncertainties and regulatory developments.