Key insights
- BTC has fallen 1.35% and is trading around $90,500.
- The leading cryptocurrency has stabilized ahead of tomorrow’s FOMC meeting.
BTC remains above $90,000 ahead of the Fed rate decision
Bitcoin started the week with bullish momentum, reaching $93,000 on Monday. Over the past 24 hours it has lost roughly 1% and is currently trading just above $90,000.
This mixed performance comes as traders await the Federal Reserve’s rate decision tomorrow. The Fed is widely expected to cut its benchmark interest rate by at least 25 basis points.
Last Friday’s U.S. Personal Consumption Expenditures (PCE) Price Index had little impact on expectations for further policy easing by the central bank.
Institutional demand for Bitcoin-related funds also points to reduced selling pressure compared with previous weeks. Data from SoSoValue showed that S-listed spot Bitcoin ETFs recorded a modest outflow of $60.48 million on Monday.
ETF inflows will likely determine the strength of Bitcoin’s recovery, since institutional buying plays a critical role in sustaining demand.
In corporate buying news, Michael Saylor’s Strategy announced on Monday that it purchased 10,624 BTC between December 1 and 7 for $962.7 million at an average price of $90,615. Following this acquisition, the company holds 660,624 BTC, valued at $49.35 billion.
Bitcoin could target $97,000
The BTC/USD 4-hour chart shows a bullish bias as Bitcoin has delivered positive performance in recent days. Last week it was rejected at the 61.8% Fibonacci retracement level at $94,253 and slipped over the weekend toward $88,000.
It recovered above $92,000 on Monday and is now trading around $90,500 per coin.
If the rally continues and the daily candle closes above the $93,000 resistance, BTC could extend its bullish move toward the next major resistance near $100,000.
The 4-hour Relative Strength Index (RSI) sits at 44, near the neutral 50 level, indicating weakening bearish momentum. For Bitcoin to overcome the $93,000 barrier, the RSI will need to climb above the neutral midpoint.
The Moving Average Convergence Divergence (MACD) posted a bullish crossover last week, which remains in effect and supports a bullish bias.
If the bullish recovery fails, Bitcoin could revisit support around the $85,569 area.