Bitcoin Maintains $132K Target Ahead Of Key Fed Rate Decision

Bitcoin (BTC) is consolidating just below its record highs, trading around $118,400 on July 30, as traders await the outcome of a crucial Federal Reserve policy decision.

The sideways action reflects growing market caution amid speculation that the US central bank may finally pivot toward interest rate cuts in the coming months.

Bitcoin Bull Pennant Targets Levels Over $132,000

Bitcoin remains locked in what appears to be a textbook bull pennant structure on the daily chart. The pattern emerged following Bitcoin’s explosive rally from around $104,000 to over $118,000 earlier this month.

Since then, BTC has trended sideways within converging trendlines, forming a triangular consolidation zone.

A breakout from the pennant’s upper trendline—currently near the $120,000 level—could validate a bullish continuation move toward the pattern’s projected target near $132,400–$135,500.

The target range is derived by adding the height of the flagpole to the breakout point.

Technicals support this bullish setup. The daily relative strength index (RSI) remains healthy at 59.19, showing there’s still room for upside before overbought conditions return.

Meanwhile, BTC continues to hold comfortably above its 50-day exponential moving average (~$112,800), suggesting buyers remain in control.

Market Awaits Fed Rate Guidance

Bitcoin’s momentum, however, hinges on the tone of the Federal Reserve’s policy meeting on July 30.

Markets broadly expect the Fed to leave interest rates unchanged for a fifth straight time, but investors are laser-focused on any shift in forward guidance.

Pressure is mounting on Fed Chair Jerome Powell—particularly from US President Donald Trump—to begin easing borrowing costs ahead of the 2025 election cycle.

“We don’t expect the Fed to cut rates, but it will be extremely interesting to see how Powell evades the ongoing pressure from the White House,” said Joachim Klement, a strategist at Panmure Liberum, adding:

“The latest trade deals will all add to inflation pressures in the US, giving the Fed less room to cut rates in the near term.”

A dovish tilt, even if slight, could be the catalyst Bitcoin needs to break out of its consolidation. Risk-on assets, including BTC, have historically responded favorably to looser monetary conditions.

On the other hand, a stubbornly hawkish Fed could delay the breakout, or even trigger a temporary correction, especially if rate cuts are pushed further into 2026.