As the Federal Open Market Committee (FOMC) meeting draws near, cryptocurrency traders are closely monitoring Bitcoin's price action for potential shifts in market dynamics. According to cryptocurrency analyst Michaël van de Poppe, a correction could be on the horizon before the FOMC event, with Bitcoin possibly retesting the $112,000 area. This level has emerged as a critical support zone in recent trading sessions, offering a strategic entry point for investors looking to capitalize on any pre-event volatility. Van de Poppe suggests that following this retest, Bitcoin could push onward to establish a new all-time high, signaling renewed bullish momentum in the crypto market.

Bitcoin Price Analysis Ahead of FOMC: Key Support and Resistance Levels

In the lead-up to the FOMC announcement, Bitcoin's price has shown signs of consolidation after a strong start to the week. Traders should watch the $112,000 mark closely, as it aligns with previous highs from earlier in 2025 and could act as a robust support level during any corrective pullback. Historical data indicates that Bitcoin often experiences heightened volatility around major economic events like FOMC meetings, where interest rate decisions can influence investor sentiment across asset classes. If Bitcoin dips to this $112K support, trading volume could spike, providing clues about the strength of buying interest. For instance, on-chain metrics from October 27, 2025, reveal that large wallet accumulations have been increasing, suggesting institutional players might view this correction as a buying opportunity. Resistance levels to monitor post-retest include the previous all-time high around $120,000, with potential upside targets extending to $130,000 if bullish catalysts align.

Trading Strategies for Bitcoin's Potential Correction

From a trading perspective, a pre-FOMC correction to $112,000 wouldn't necessarily spell doom for Bitcoin's uptrend; instead, it could present attractive risk-reward setups for both short-term scalpers and long-term holders. Swing traders might consider entering long positions near this support, setting stop-loss orders just below $110,000 to mitigate downside risks. Technical indicators, such as the Relative Strength Index (RSI) hovering around 60 on daily charts as of late October 2025, indicate room for upward movement without immediate overbought conditions. Moreover, moving averages like the 50-day EMA provide additional confluence at around $105,000, reinforcing the idea that any dip could be shallow. For those trading Bitcoin pairs, such as BTC/USD or BTC/ETH, monitoring 24-hour trading volumes is essential—volumes exceeding 500,000 BTC in a session could confirm a reversal. Van de Poppe's outlook emphasizes that after the retest, the path to a new ATH could be fueled by positive macroeconomic signals, potentially driving Bitcoin's market cap higher and influencing correlated assets like Ethereum and Solana.

Beyond the immediate FOMC impact, broader market implications tie into institutional flows and global economic trends. With Bitcoin's dominance in the crypto space, any post-correction rally could spill over into altcoins, creating cross-market trading opportunities. For stock market enthusiasts eyeing crypto correlations, events like FOMC often affect risk assets, where a dovish stance might boost equities and, by extension, Bitcoin as a hedge against inflation. Traders should track on-chain data points, including transaction counts and active addresses, which surged by 15% in the week leading to October 27, 2025, indicating growing network activity. This data supports a bullish thesis, where a successful retest at $112K could lead to a breakout, targeting new highs by year's end. In summary, while volatility is expected, strategic positioning around key levels could yield significant returns, making this a pivotal moment for Bitcoin traders.

To optimize trading decisions, consider diversifying across multiple pairs and incorporating fundamental analysis. For example, if FOMC hints at rate cuts, Bitcoin could see inflows from traditional finance sectors, amplifying the push to new ATHs. Always use verified tools for real-time monitoring, and remember that past performance isn't indicative of future results. This analysis underscores the importance of patience during corrections, as they often precede major rallies in the cryptocurrency market.