Bitcoin’s (BTC) price movement has disappointed bulls, as the highly anticipated interest rate cut by the U.S. Federal Reserve failed to provide the necessary spark for a sustained rally. The Fed’s latest 25-basis-point reduction, the third in recent months, was widely expected by the market and resulted in a brief spike above the $94,000 level. However, this momentum quickly faded, sending Bitcoin back towards the $90,000 zone.

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The lack of enthusiasm stems from the cautious or "hawkish" tone accompanying the announcement. The market reacted less to the cut itself and more to Federal Reserve Chair Jerome Powell's signaling of a potential pause in further easing, citing concerns over persistent inflation and conflicting economic data. This mixed message dampened investor appetite for risk assets, leading to a broader market deleveraging.
<h3>The Technical Picture: Key Barriers and Support</h3>
From a technical perspective, Bitcoin is struggling to overcome a critical resistance cluster. The recent attempt to move higher was decisively rejected at the $94,253 level, which aligns with the significant 61.8% Fibonacci retracement of the move from the April low to the October high.

The inability to achieve a sustained close above this barrier indicates that selling pressure remains dominant in the medium term. Traders are now keenly watching the next major support zone, which is located around $89,000–$88,000. A failure to hold this range could lead to a deeper retracement toward the next critical level at $85,569.
<h2>Liquidity and Leverage Reset</h2>
The market volatility following the Federal Open Market Committee (FOMC) meeting triggered a significant leverage reset. Reports indicate that hundreds of millions of dollars in crypto long positions were wiped out shortly after the Fed's statement.

While this flush clears out excessive speculation, the broader market remains constrained by structural headwinds, including inconsistent institutional inflows and thin order books. Analysts suggest that until concentrated short pressure above the $94,500 zone is absorbed and <a href="https://www.cryptoknowmics.com/news/ethereum-gains-institutional-momentum-with-etf-staking-innovation/">institutional ETF</a> flows become consistently positive, Bitcoin is likely to remain pinned below the psychological $100,000 threshold. The current environment favors caution, with the price action dependent on broader macro signals and shifts in liquidity.

Bitcoin Bulls Stymied as Fed’s Rate Cut Fails to Spark Sustained Rally

Bitcoin's price rally failed to sustain after the Fed's rate cut, as Chair Powell's cautious remarks about future easing triggered a "risk-off" mood.

Bitcoin Bulls Stymied as Fed’s Rate Cut Fails to Spark Sustained Rally

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