Important points
- BTC is down 1.35% and trading around $90,500.
- Major cryptocurrencies stabilized ahead of tomorrow’s FOMC meeting.
BTC remains above $90,000 ahead of Fed interest rate decision
Bitcoin started the week bullishly, reaching the $93,000 level on Monday. However, its value has decreased by 1% in the past 24 hours and it is currently trading at over $90,000.
Performance has been mixed as traders look forward to tomorrow’s Fed rate decision. The Fed is expected to lower its benchmark lending rate by at least 25 basis points.
The US personal consumption expenditure (PCE) price index released last Friday had little impact on expectations for further policy easing by apex banks.
In addition to that, institutional demand for Bitcoin-related funds has shown reduced selling pressure compared to the previous week. The S-listed Spot Bitcoin ETF recorded modest outflows of $60.48 million on Monday, data obtained from SoSoValue revealed.
Financial institutions play a key role in driving demand, and Bitcoin’s recovery could be determined by ETF inflows.
Finally, Michael Saylor Strategy announced on Monday that it acquired 10,624 Bitcoins between December 1st and 7th for $962.7 million, at an average price of $90,615. Thanks to this acquisition, the company now holds 660,624 BTC worth $49.35 billion.
Bitcoin could rise towards $97,000
The BTC/USD 4-hour chart is bullish and efficient as Bitcoin has performed well in recent days. The cryptocurrency faced rejection from the 61.80% Fibonacci retracement level of $94,253 last week and fell to the $88,000 level over the weekend.
However, it rallied above $92,000 on Monday, but has since fallen and is currently trading above $90,500 per coin.
If the rally continues and the daily candlestick closes above the $93,000 resistance, BTC could extend its bullish move towards the next key resistance level at $100,000.
The Relative Strength Index (RSI) on the 4-hour chart is at 44, close to the neutral 50 level, suggesting bearish momentum is fading. However, for Bitcoin to break above the $93,000 resistance level, the RSI would need to move above the neutral level.
The Moving Average Convergence Divergence (MACD) showed a bullish crossover last week and is currently holding, confirming the bullish bias.
However, if the bullish recovery fails, Bitcoin could revisit support levels near $85,569.
