Key Takeaways
- BTC slipped 1.35% and is trading around $90,500.
- The leading cryptocurrency has steadied ahead of tomorrow’s FOMC meeting.
BTC Holds Above $90,000 Ahead of Fed Rate Decision
Bitcoin opened the week on a bullish note, briefly reaching $93,000 on Monday. Over the past 24 hours it has given back roughly 1% and remains trading above the $90,000 mark.
This mixed performance comes as traders await the Federal Reserve’s rate decision expected tomorrow. Markets are pricing in at least a 25 basis-point rate cut from the Fed.
Last Friday’s U.S. Personal Consumption Expenditures (PCE) price index had only a modest impact on expectations for further policy easing by the central bank.
Institutional demand for Bitcoin-linked funds shows signs of easing selling pressure compared with recent weeks. Data from SoSoValue indicated that spot Bitcoin ETFs listed on U.S. exchanges recorded a small outflow of $60.48 million on Monday.
Inflows into ETFs could help sustain a Bitcoin recovery, since institutional buying plays a significant role in supporting demand.
Separately, Michael Saylor’s Strategy announced on Monday that it acquired 10,624 BTC between December 1 and 7, spending $962.7 million for an average price of $90,615. Following this purchase, the firm holds 660,624 BTC with a notional value of $49.35 billion.
Bitcoin Could Climb Toward $97,000
The 4-hour BTC/USD chart remains bullish and effective, as Bitcoin has posted positive momentum in recent days. Last week the market was rejected at the 61.8% Fibonacci retracement near $94,253 and dipped to around $88,000 over the weekend.
On Monday Bitcoin recovered above $92,000 before retreating; it currently trades near $90,500 per coin.
If the rally continues and a daily candle closes above the $93,000 resistance, BTC could extend its bullish run toward the next major resistance around $100,000.
The 4-hour Relative Strength Index (RSI) sits at 44, close to the neutral 50 level, indicating weakening bearish momentum. For a sustained upside move, RSI would need to cross into neutral territory and above if Bitcoin clears $93,000.
Last week’s Moving Average Convergence Divergence (MACD) showed a bullish crossover that remains intact, supporting the upward bias.
However, if the bullish recovery fails, Bitcoin could retest support near the $85,569 area.