Technical Analysis – Bitcoin rebound stalls at 89,000 ahead of Fed rate decision
- BTCUSD three day rally slows; upside restrained
- Price action still below all three key SMAs, uptrend line
- Momentum indicators continue to reflect bearish pressure
Bitcoin (BTCUSD) is attempting a modest recovery from the one month lows near 86,050 touched this week, extending a three day rebound from the lower Bollinger band to test a key support turned resistance area around 89,300, positioned just below the 50day simple moving average (SMA). However, the upside has stalled ahead of the highly anticipated Fed rate decision later today and amid ongoing ETF outflows.
The momentum indicators reinforce the cautious tone and maintain a bearish tilt. The MACD has slipped below both the zero line and its red signal line, while the RSI has eased back under the 50 neutral mark, keeping the broader downside pressure intact.
If the bullish momentum resumes, initial resistance sits just above the 50day SMA near 90,005, with the next upside target at the 23.6% Fibonacci retracement of the October-November pullback at 91,364 – an area tested last week and aligned with the mid Bollinger band. A sustained break above this region could bring the short term ascending trendline near 94,000 into play, marking the upper boundary of the multi month range, followed by a potential retest of the monthly highs near 98,000.
On the downside, a pullback could revisit the weekly low at 86,050, before exposing the range floor at 85,000, and then the seven month low from November 21 at 80,615.
In summary, Bitcoin’s latest rebound remains fragile, with price action still trading below all key SMAs. A decisive move above the 90,000-91,000 area is needed to signal a more meaningful shift in momentum.
