#Bitcoin and #Ethereum are navigating a cautious market ahead of the Fed’s January 28 meeting. BTC trades at $87.7K, down 5.2% over the past week, while ETH holds near $2.9K with slight 24-hour gains. The market is focused on the Fed holding rates at 3.50%–3.75%, but attention is on Powell’s signal regarding the 2026 terminal rate. Traditional safe havens are outperforming, with Gold hitting a record $5,111 as institutional flows favor defensive assets.
Technically, BTC faces critical resistance at $90K and support at $80.6K, while ETH shows neutral RSI around key support at $2,800. Smart money behavior is telling: top BTC traders are selling while ETH top traders are buying, reflecting divergent strategies amid market uncertainty. The Fear & Greed Index sits at 29, highlighting extreme caution and the potential for volatile swings post-FOMC.
In my view, the market is balancing on sentiment and policy signals—short-term downside remains likely if BTC fails to reclaim $90K, but broader macro trends like slowing labor growth and sticky inflation could give risk assets, including crypto, room to recover if the Fed signals patience. Watching support zones, institutional flows, and Fed commentary will be key to understanding the next directional move.