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Bitcoin Price Analysis After FOMC Meeting: Rate Cuts May Not Drive Immediate Rally

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$70,898.104.79%
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Bitcoin analysis following the FOMC meeting suggests a 25 bps rate cut is likely, with a 50 bps cut seen as unlikely. Traders note prior cuts in September and October were followed by 8% and 12% Bitcoin price declines. A recent 5.7% rally to $94k may reflect market anticipation. However, Bitcoin remains below a key November supply zone, with weak OBV signals. A bullish break above $96k could confirm a market rally, but a drop to $90.6k or $88k remains a risk if resistance fails.

Citing AMBCrypto, the U.S. Federal Reserve’s final meeting of 2024 is expected to deliver a 25 bps rate cut, with traders assigning low probability to a 50 bps cut. Futures trader Ardi noted that previous rate cuts in September and October were followed by Bitcoin price drops of 8% and 12%, respectively. The market may have already priced in the FOMC outcome, as seen in the recent 5.7% rally to $94k. However, Bitcoin remains below a key supply zone from mid-November, and the OBV indicator shows slow buying pressure. On the 4-hour chart, a bullish structure break occurred on Tuesday, but a sustained move above $96k is needed to confirm a bullish trend. A bearish scenario is also possible, with a potential dip to $90.6k or even $88k if resistance fails.

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