Bitcoin experienced a sharp price increase on Tuesday, only to see its upward momentum falter shortly thereafter. This volatility has sparked intense debate among market analysts regarding the sustainability of the rally. Many are questioning whether the surge represents a genuine bullish signal or a temporary ‘fake breakout’ that could precede further consolidation or decline. The primary focus for traders and investors remains squarely on the upcoming Federal Reserve interest rate decision, scheduled for next week. Historically, such macroeconomic policy announcements have exerted significant influence on cryptocurrency markets, often dictating short-term price trajectories. Market participants are now closely monitoring key technical indicators and trading volumes to gauge underlying strength. The prevailing sentiment suggests a cautious approach, as the market seeks clearer directional cues from both macroeconomic developments and Bitcoin’s own on-chain metrics. This period of uncertainty underscores the asset’s continued sensitivity to broader financial conditions.
