Bitcoin continues to trade sideways, frustrating traders, but early signals suggest a potential bullish breakout may be forming.
Fed Leaves BTC Largely Unmoved
The Federal Reserve’s 25-basis-point rate cut, paired with cautiously hawkish guidance, had minimal impact on Bitcoin, which is hovering around $90,244. Prices remain trapped in a mini-rising channel within the broader downtrend from all-time highs. A break above the main bearish trendline could signal the end of the long-term downtrend, while a drop below the ascending channel would reinforce bearish momentum.
Indicators Turning Positive
Technical indicators show signs of bullish momentum. Bitcoin’s MACD histogram (50,100,9) is approaching a crossover above zero—a classic buy signal. The U.S. dollar index (DXY) has weakened post-Fed, falling to 98.13, with its MACD turning negative, providing further support for risk assets like crypto.
Meanwhile, the Nasdaq has regained footing, trading above its 50-, 100-, and 200-day moving averages. Bitcoin sellers appear fatigued, as prices remain steady despite delays in U.S. crypto legislation.
Key Levels and Risks
Resistance lies between $97,000 and $108,000, highlighted by SMAs and the Ichimoku Cloud. ETF inflows remain muted, totaling just $219 million since late November. Bitcoin’s correlation with Nasdaq remains lopsided—falling sharply with tech sell-offs but rising modestly on rallies.
A breakdown below the mini ascending channel would expose support near $80,000. For now, Bitcoin sits at a crossroads: poised for a breakout if momentum holds, but still vulnerable to renewed selling.
