Key Points
- BTC slipped 1.35% and is trading around $90,500
- Major cryptocurrencies remain steady ahead of tomorrow’s FOMC decision
BTC Holds Above $90,000 Ahead of Fed Rate Decision
Bitcoin began the week on an upward trajectory, briefly reaching $93,000 on Monday. Since then it has lost roughly 1% over the past 24 hours and is currently trading just above $90,000.
Markets showed mixed performance as traders awaited the Federal Reserve’s rate decision expected tomorrow. Most analysts anticipate the U.S. central bank will cut its benchmark interest rate by at least 25 basis points.
Friday’s U.S. Personal Consumption Expenditures (PCE) price index, released last week, had only a modest impact on expectations for further easing by the Fed.
Institutional demand for Bitcoin-related funds has also signaled a reduction in selling pressure compared with the prior week. Data from SoSoValue show that spot Bitcoin ETFs listed on the stock exchange recorded a modest outflow of $60.48 million on Monday.
ETF inflows will likely play a key role in any sustained Bitcoin recovery, as institutional buyers remain an important source of demand.
Separately, MicroStrategy announced on Monday that it purchased 10,624 bitcoin for $962.7 million between December 1–7 at an average price of $90,615 per coin. With this acquisition, the company holds 660,624 BTC valued at $49.35 billion.
Bitcoin Could Rally Toward $97,000
The BTC/USD 4-hour chart shows an overall bullish structure, reflecting positive performance in recent days. Bitcoin faced resistance at the 61.8% Fibonacci retracement level of $94,253 last week, which pushed the price down toward $88,000 over the weekend.
Prices recovered above $92,000 on Monday before easing to trade around $90,500 per coin.
If the rally continues and daily candles close above the $93,000 resistance, BTC could extend gains toward the next significant resistance near $100,000.
The 4-hour Relative Strength Index (RSI) sits at 44, close to the neutral 50 level, indicating that downward momentum has faded. For Bitcoin to break the $93,000 resistance decisively, the RSI will need to move above the neutral midpoint.
The Moving Average Convergence Divergence (MACD) recorded a bullish crossover last week that remains intact, supporting the upside bias.
However, if the bullish recovery falters, Bitcoin could pull back to the next support area around $85,569.