Bitcoin Failed to Sustain Bullish Momentum After Fed Decision, BTC Eyes $89K Support

Bitcoin struggled to maintain its post-Fed momentum after the Federal Reserve delivered a 25-basis-point rate cut on December 10 — the third cut of 2025. While lower rates usually support risk assets, the market interpreted the move as insufficiently dovish. Chair Jerome Powell’s cautious remarks about the pace of future cuts introduced additional uncertainty, limiting the impact of the decision.

BTC briefly rallied to $94,000, but the reaction faded as traders questioned whether the macro environment could justify sustained upside. Profit-taking accelerated after Bitcoin failed to hold the $93,000–$94,000 resistance zone, a key psychological area that has repeatedly capped momentum.

Technical Structure Shows Signs of Weakness

Source: coinmarketcap

Bitcoin broke below its 50-day simple moving average at $91,516 and the 200-day SMA at $108,941, confirming a shift into a bearish structure. Momentum indicators reflect hesitation rather than recovery.

The RSI at 45.3 points to neutral-to-negative conditions, while the MACD histogram remains mildly positive without indicating a clear reversal.

Price is now testing Fibonacci support between $88,000 and $89,000 — a zone that served as a stabilizing level in earlier pullbacks. Repeated failures to reclaim $93,000 have shifted market expectations toward lower targets. A daily close below $88,000 could accelerate selling toward $85,000, especially if derivative liquidations cascade.

Macro Sentiment Remains Unsettled

This market reaction highlights the disconnect between trader expectations and the Fed’s measured stance. Many anticipated stronger forward guidance on easing. Instead, Powell emphasized caution, which tempered risk appetite across markets.

Bitcoin’s inability to capitalize on a rate cut — typically a bullish event — signals broader uncertainty about economic conditions and the sustainability of liquidity-driven rallies.

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BTC Price Outlook: Critical Test at $89K

Bitcoin sits at a pivotal support level. Holding $88,000–$89,000 would allow the market to stabilize and potentially revisit the $93,000 resistance. A breakdown, however, risks a continuation toward $85,000.

For now, the muted response to a rate cut underscores a market waiting for clearer signals — either from macro conditions or from price action itself.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.