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Bitcoin (BTC) traders remain cautious as the cryptocurrency’s price hovers just below key resistance levels ahead of a potentially volatile week. Market analysis indicates BTC is confined within a narrow range, with support around $114,000 and resistance near $117,200. This consolidation persists despite the recent attempt to retest crucial support levels, as traders keep a close eye on macroeconomic factors that could trigger sharper price movements.

Bitcoin Stuck Between Critical Levels

Current data from Cointelegraph Markets Pro and TradingView show BTC/USD firmly below $116,000, with prices fluctuating between support at $114,000 and resistance at $117,200. Last week’s price movements reacted to US macroeconomic volatility, keeping traders alert for possible breakouts or further sideways trading.

According to analyst Rekt Capital, “The retest of $114K support continues to hold, but resistance at around $117.2K remains a critical hurdle. The market is trading within a range, and traders are awaiting confirmation whether this level is strong enough to break higher or will hold as a ceiling.”

“This setup indicates a range-bound situation. The next move hinges on whether BTC can break above resistance at $117.2K or if it will retreat.”

Fellow trader Daan Crypto Trades highlighted the ongoing inertia, noting, “It’s the fourth consecutive weekend with minimal volatility—no significant gaps in CME Bitcoin futures and no clear directional bias. Key levels to watch this week are $112K and $118K, where we could see decisive moves depending on macroeconomic developments.”

Crypto investor Ted Pillows agrees that Bitcoin remains largely in consolidation mode around the $116,000 level. “If bulls can push above $117,000, we may see a rally. Otherwise, a short-term dip followed by a rally in Q4 seems likely,” he noted in a recent post.

Upcoming Macro Data and Federal Reserve Policies to Influence Markets

The macroeconomic outlook is set to inject volatility into the crypto markets as traders await the release of critical US inflation data. The Thursday publication of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation indicator, is expected to shed light on the likely path of future monetary policy.

Federal Chairman Jerome Powell and other Fed officials are scheduled to speak this week, amidst ongoing speculation about the timing and trajectory of interest rate adjustments. The CME FedWatch Tool indicates markets are almost unanimously priced in for a 0.25% rate cut at the upcoming October meeting, as traders analyze macroeconomic indicators to gauge the Fed’s next moves.

With the focus on how monetary policy will evolve, Bitcoin and other cryptocurrencies are poised for potential swings, depending on macroeconomic releases and regulatory developments shaping the blockchain landscape. Market participants remain vigilant ahead of this “busy week” with high-impact macroeconomic data and key policy statements on the horizon.

This overview underscores the importance of macroeconomics in dictating crypto market dynamics, especially with ongoing debates over crypto regulation, the role of DeFi projects, and the growing NFT sector within the broader blockchain ecosystem.