Bitcoin Rallies Ahead of Fed Rate Decision as Technicals Turn Bullish
Bitcoin (BTC) has extended a seven-day recovery, rising about 7% as traders position ahead of the Federal Reserve’s expected December 10 rate cut. Despite being roughly 10% down for the month, BTC broke above a key $91,000 resistance zone, with momentum indicators signaling strength: the MACD histogram turned positive and the RSI sits in a moderate 44–49 range, leaving room before overbought levels. Market participants widely anticipate a 25 basis-point Fed cut, driven by softer jobs data and cooling inflation — an outcome likely to boost liquidity and favor risk assets such as Bitcoin. Analysts warn that a dovish Fed would reinforce BTC’s liquidity-driven rally, while a surprise pause or hawkish commentary could quickly dampen momentum and raise short-term volatility given elevated leverage on exchanges. The piece also highlights Outset PR’s data-driven approach to crypto communications but notes macro policy remains the dominant catalyst for Bitcoin’s next decisive move.
Bullish
The article indicates a bullish near-term outlook for BTC driven by both technical and macro factors. Technically, BTC’s breakout above the $91,000 resistance, a positive MACD histogram, and a non-overbought RSI point to continued upward momentum and room for gains. Macro expectations of a 25 bps Fed cut increase liquidity and historically favor risk assets, including Bitcoin, which has previously rallied during easing cycles. Together these elements lift short-term bullish conviction. However, the piece cautions that macro policy remains the primary catalyst: a surprise Fed pause or hawkish guidance could reverse gains quickly, especially with elevated leveraged positions that amplify volatility. In past episodes (e.g., rate-cut expectations in easing cycles), Bitcoin has often outperformed during renewed liquidity inflows, but sudden shifts in Fed messaging have produced sharp pullbacks. Therefore, traders should view the sentiment as bullish but conditional — favorable for momentum trades and long exposure ahead of the Fed, while prudent risk management (position sizing, stop-losses, monitoring leverage and funding rates) is advised to guard against rapid downside on an unexpected policy outcome.