Bitcoin faces familiar pre-FOMC turbulence as traders trim positions ahead of the Federal Reserve's policy decision. This pattern of heightened volatility surrounding central bank announcements is playing out once again, with the cryptocurrency briefly dipping below key psychological levels as market participants brace for potential interest rate shifts.

Despite pressure, analysts eye $70,000 as critical support potentially reinforced by institutional participation. Traditional finance firms and spot ETF volumes have emerged as stabilizing forces, with continued Bitcoin accumulation possibly providing a floor. The question remains whether institutional holders will deploy enough capital to maintain the $70,000 threshold through the Fed's announcement and market reaction.