Bitcoin continues to trade sideways, frustrating traders with directionless price action—but early signals suggest a potential bullish turn.
Fed Moves, BTC Steady
The Federal Reserve’s 25-basis-point rate cut, accompanied by cautiously hawkish guidance, had little impact on Bitcoin, which is holding around $90,244. The cryptocurrency remains confined to a mini-rising channel within its broader downtrend from all-time highs.
Technically, a break above the overarching bearish trendline could signal the end of the long-term downtrend, while a drop below the ascending mini-channel would reinforce bearish momentum and open the door to further losses.
Bullish Indicators
Momentum indicators point to possible upside. Bitcoin’s MACD histogram (50,100,9) is approaching a crossover above zero, suggesting renewed bullish momentum. The U.S. dollar index (DXY) has weakened post-Fed, hitting 98.13—the lowest since mid-October—and its MACD has turned negative, which historically supports risk assets like cryptocurrencies.
The Nasdaq has regained footing, trading above its 50-, 100-, and 200-day moving averages, offering another supportive signal. Bitcoin sellers appear to be losing steam, as prices hold steady despite legislative setbacks in the U.S. Senate.
Key Levels and Risks
If Bitcoin breaks out, resistance between $97,000 and $108,000—highlighted by SMAs and the Ichimoku Cloud—will be critical. ETF flows remain muted, with cumulative net inflows since late November at just $219 million. Bitcoin’s correlation with the Nasdaq is lopsided, rising modestly on tech rallies but falling sharply during sell-offs.
A breakdown below the mini ascending channel could expose support near $80,000. For now, Bitcoin sits at a technical crossroads: poised for a breakout if momentum holds but still vulnerable to renewed selling pressure.
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