The FOMC is scheduled for next Tuesday (December 9-10), and the market is almost unanimous on the Fed’s dovish stance.
Polymarket traders are pricing in a 25 basis point pullback 92% of the time, changing the Bitcoin price analysis from a bearish breakdown to a possible reversal.
Chairman Powell expected to cut interest rates by 25 bps despite inflation concerns
Fed Chairman Jerome Powell is expected to cut interest rates by another quarter of a point this week, even as several policymakers have expressed concerns about persistent inflation.
The Fed responded to unexpectedly weak summer employment data with its second consecutive interest rate cut in October.
As a result of this decision, hawkish voices among government officials, including five current voters, have increased, and they have shown reluctance to support further easing in December.
The tide changed on November 21, when New York Fed President John Williams suggested the situation warranted a rate cut. “Soon”
Recent Bitcoin price analysis by Cryptonews reveals that key on-chain metrics are gaining momentum.
Bitcoin’s “exuberance” is on the rise again, a pattern that has historically coincided with bull market phases, suggesting there may be considerable upside potential left in the current cycle.
Analyst Michael van de Poppe outlined a bullish scenario in which short-term volatility is expected before a sustained rally.
He expects pre-FOMC selling pressure to continue today and Monday, pushing prices down to $87,000 and potentially increasing liquidity at the lows.
“Then there will be a quick rebound, confirming Bitcoin’s uptrend and setting the stage for a breakout above $92,000.”
Therefore, we will see a rally towards $100,000 over the next week or two as the Fed cuts QT, lowers interest rates, and expands the money supply to accelerate the business cycle. ” Van de Poppe said.
Bitcoin Price Analysis: Technical Setup Favors $94,000 Breakout
Technical analysis shows that Bitcoin has broken out of a long downtrend red channel, indicating that the strongest phase of the downtrend is likely over.
The price is currently hovering around the $89,000 zone, directly below the major resistance-turned-support area highlighted in orange.
Sellers can still create short-term pressure until BTC closes definitively above this zone.
The breakout attempt is already showing early strength as BTC rebounded from the lower channel area around $79,000 and pushed back towards the intermediate trend.
The next major resistance level is near $94,600, a clearing of which will confirm the bullish continuation.
If that happens, the chart predicts an upside target of $108,000 and an eventual $116,000, which is in line with the previous liquidity zone.
Maxi Doge presale capitalizes on market momentum
Pre-sale projects like Maxi Doge (MAXI) are attracting investors’ attention as the Fed’s interest rate cuts raise the possibility of a Bitcoin comeback.
MAXI captures the grassroots momentum that drove Dogecoin’s astounding 161,000x rise.
The project has secured over $4.2 million in funding while building a vibrant community focused on sharing trading strategies and market opportunities.
especially, 25% of the funds raised Invested in promising plays, the proceeds are recycled into marketing efforts and community rewards to accelerate growth.
Investors can visit the Maxi Doge official website and participate in the pre-sale for $0.000272.
Next, connect your Ethereum compatible wallet like Best Wallet and buy MAXI with ETH, BNB, or USDT.
Payment by bank card is also supported and can be accessed instantly.
The post Bitcoin Price Analysis: 92% Chance of Fed Rate Cut Causes Bitcoin Comeback Talk appeared first on CryptoNews.
