Key points
- BTC is down 1.35% and is trading around $90,500.
- The leading cryptocurrency has steadied ahead of tomorrow’s FOMC decision.
BTC Holds Above $90,000 Ahead of Fed Rate Decision
Bitcoin began the week on a positive note, reaching $93,000 on Monday. Over the last 24 hours it has retraced roughly 1% and is currently trading just above $90,000.
This mixed price action comes as traders prepare for tomorrow’s Federal Open Market Committee (FOMC) meeting. Market participants widely expect the Federal Reserve to cut its policy rate by at least 25 basis points.
Last Friday’s release of the US Personal Consumption Expenditures (PCE) price index did little to alter expectations for further monetary easing from the central bank.
Institutional demand for Bitcoin-related products also appears to be easing the recent selling pressure. Data from SoSoValue shows that U.S.-listed spot Bitcoin ETFs recorded a modest outflow of $60.48 million on Monday.
ETF inflows and outflows remain an important factor for Bitcoin’s recovery prospects, as institutional buyers play a significant role in shaping demand.
In company-specific news, Michael Saylor’s Strategy announced on Monday that it purchased 10,624 BTC for $962.7 million between December 1 and 7, at an average price of $90,615 per coin. Following this acquisition, the firm now holds 660,624 BTC, valued at $49.35 billion.
Bitcoin Could Rally Toward $97,000
The BTC/USD 4-hour chart shows a generally constructive outlook after recent gains. Last week Bitcoin was rejected at the 61.8% Fibonacci retracement level near $94,253 and slipped to around $88,000 over the weekend.
It recovered above $92,000 on Monday and currently trades around $90,500 per coin.
If the upward momentum continues and the daily candle closes decisively above resistance at $93,000, Bitcoin could extend its bullish move toward the next major resistance near $100,000.
The 4-hour Relative Strength Index (RSI) sits at 44, close to the neutral 50 level, indicating that bearish momentum has diminished. For Bitcoin to break through the $93,000 resistance, the RSI will likely need to move above neutral.
The Moving Average Convergence Divergence (MACD) produced a bullish crossover last week and remains in a supportive position, underpinning a bullish bias.
However, if the rally falters, Bitcoin could retest support around $85,569.