Bitcoin Faces Crucial Resistance Ahead of Fed Rate Decision

Bitcoin's recent price surge has been met with resistance at critical levels of $75,000 and $85,000, according to on-chain data from CryptoQuant. These levels are based on the Traders' On-chain Realized Price, which measures the average cost basis of coins moved by short-term active traders.

CryptoQuant's head of research, Julio Moreno, has identified these key resistance levels as potential barriers for Bitcoin's price movement. The firm argues that the market remains in a bear cycle, despite the recent rebound driven largely by derivatives.

The latest rebound has been characterized as a derivatives-led relief rally rather than a broader bullish trend. Signs of distribution are evident, with 6,100 BTC sent to exchanges on March 16, comprising large deposits making up 63% of total inflows.