Bitcoin price fell back under the $74,000 support level after three straight days of gains as investors remained cautious ahead of the Federal Reserve’s rate cut decision scheduled for later today.

After rallying over 7% and touching nearly $76,000 on Tuesday, Bitcoin (BTC) gave up part of its gains, dropping back below the $74,000 support level on Wednesday. Trading at $73,836, the bellwether remains 2.7% lower than its local peak and 24% below its year-to-date high.

Bitcoin price fell as investors booked profits from its recent run before entering wait-and-watch mode ahead of the Federal Reserve’s rate cut decision scheduled to be revealed at 2:30 P.M. UTC today.

According to market expectations, the Federal Reserve will likely hold interest rates at 3.50% to 3.75%. This stance is likely due to a surge in inflation from a spike in oil prices, which climbed over $100 per barrel amid the ongoing U.S.-Iran war in the Middle East. According to the CME FedWatch Tool, the odds of the Fed holding the interest rate steady are as high as 98.9%. 

Risk assets such as Bitcoin tend to benefit when the Fed cuts interest rates, while they often face pressure when the Federal Reserve decides to hold or increase them to combat sticky inflation.

However, it should be noted that the Fed’s interest rate decision could have already been priced in, and the market could just be taking a breather before resuming its broader trend, as seen during rallies in times of macroeconomic and geopolitical uncertainty. 

For Bitcoin, a key underlying catalyst that could support a potential rebound comes from the continued inflows into spot Bitcoin ETFs. Data from SoSoValue show that the 12 spot BTC ETFs have extended their inflow streak to seven consecutive days, attracting nearly $1.17 billion from institutional investors.

Bitcoin price eyes rebound on bullish triangle breakout

On the daily chart, Bitcoin price has confirmed a breakout from the upper side of a symmetrical triangle pattern, a bullish continuation pattern in technical analysis.

Bitcoin price has also moved above the Supertrend line, which has flipped green, a sign that the short-term momentum is turning positive.

Meanwhile, the Relative Strength Index reading has moved higher to 59 while still having room for more gains before hitting overbought levels at 70, where buying pressure often reaches exhaustion. 

For now, traders would be keeping an eye on $76,000, the level BTC failed to breach during its run on Tuesday. A break above the threshold could clear the way to test the $80,000 psychological milestone.

On the contrary, a drop below $73,000 could lead to a shift in sentiment and a deeper retest of support levels near $71,000.