Bitcoin Ahead of Fed Announcement, Will a Decline Repeat This Time?

▲ Jerome Powell, Chairman of the Federal Reserve, Bitcoin/ChatGPT generated image ©

Bitcoin is once again in the midst of volatility ahead of this week's Federal Open Market Committee announcement.

According to crypto media outlet Finbold on April 27 (local time), there is a possibility of increased short-term volatility for Bitcoin (BTC) ahead of the monetary policy announcements from five major central banks, including the U.S. Federal Reserve (Fed). As it has maintained a leverage-based rally in recent weeks, there is an analysis that correction pressure may emerge after the Federal Funds Rate and Federal Open Market Committee (FOMC) statement announcements.

Trading expert XBTkaz pointed out that Bitcoin prices have fallen every time the Fed's FOMC statement was announced since July last year, with the exception of last month. This meeting is scheduled for April 29, and the Fed is expected to keep the benchmark interest rate at 3.75%. On the decentralized prediction market Polymarket, the probability of a rate freeze was reflected as 99.9%, while the possibility of a 25bp cut remained below 1%.

Technical trends are also increasing market caution. Bitcoin is assessed to have been trapped in a bearish market structure for several months, repeatedly forming lower highs and lower lows since February 2026. Technical analyst JDK Analysis analyzed that recent price movements are forming a potential bear flag, defined as an ascending symmetrical channel.

Although Bitcoin recently surged above $79,400, the analyst suggested that a lower high might have formed in this range. Accordingly, there is a forecast that if selling pressure expands in the future, the lower bound of the ascending channel could be tested again.

There is also an observation that if the Fed freezes interest rates, a 'sell the news' trend could appear in the market. In particular, if Bitcoin has already risen before the FOMC announcement, it is likely that most of the market has already priced in the event, which could lead to increased profit-taking pressure in the days to weeks following the announcement.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*