Bitcoin Buy Signal Emerges Ahead of Federal Reserve Rate Decision

A bullish reversal pattern for Bitcoin has been indicated by the TD Sequential momentum indicator just days before the Federal Reserve's meeting on September 16, 2026. This meeting is highly anticipated, with markets expecting a rate hike. Currently, Bitcoin is trading around $77,000, caught in a consolidation range that has left traders on both sides frustrated. The TD Sequential signal suggests a potential rebound within three to nine days if selling pressure continues to decrease.

The TD Sequential, developed by Thomas DeMark, identifies potential reversals by counting consecutive candles in the same direction. A buy setup indicates that downside momentum may be waning, although it does not guarantee a reversal. Analyst Ali Martinez has noted that previous TD Sequential buy signals for Bitcoin have often coincided with short-term upward movements, particularly when the signals appear near technical support levels. The current signal arrives as Bitcoin remains in a range with limited selling pressure but insufficient buyer enthusiasm for a breakout.

Interest-rate futures indicate an 88.5% probability of a 25-basis-point hike at the upcoming Federal Open Market Committee (FOMC) meeting. The 2-year Treasury yield has risen to 4.63%, reflecting expectations of continued tightening by the Federal Reserve. Historically, major macroeconomic announcements have produced mixed results for Bitcoin, with hawkish announcements often leading to immediate price dips followed by recoveries in the days or weeks that follow. Traders are advised to monitor both bullish and bearish indicators as the market reacts to the Fed's decision.

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Source: KLEA News