Bitcoin Price Holds Critical $90,000 Level Amid Post-Fed Market Shakeout
In a testament to its underlying strength, the Bitcoin price holds firm above the crucial $90,000 psychological level, despite a broad market sell-off triggered by what traders are dubbing a “hawkish cut” from the Federal Reserve. The initial bullish reaction to the rate decision quickly reversed into a sharp liquidation event, reminding markets that in crypto, narrative and trader positioning often trump the raw news itself.
The “Hawkish Cut” Paradox: Why Markets Sold the News
The Fed delivered the expected 25-basis-point rate cut, yet the market sold off aggressively. Why? The devil was in the details—and the dissents. With two voters opposing any cut and one pushing for a deeper cut, the split committee revealed significant internal discord. More importantly, Chair Jerome Powell’s accompanying tone failed to signal the aggressive easing path many bulls had hoped for, focusing instead on data dependency amid persistent inflation. This narrative of a cautious, potentially slower-cutting Fed triggered a classic “sell the news” event, liquidating over-leveraged longs and erasing $92,000 as Bitcoin briefly reclaimed it.
Technical Battle: Key Support and Resistance in Focus
The failed breakout has refocused attention on critical technical levels. Immediate resistance remains the $93,000 – $94,000 zone that has repeatedly capped rallies. On the downside, the $88,000 – $89,000 band is now the essential support to watch; a hold here could set the stage for another ascent. However, a breakdown could see a swift test of $85,000. Current indicators reflect the pressure: the MACD shows bearish momentum, and the RSI at 45 indicates neutral but weakening sentiment.
On-Chain Silver Lining: The “Buy-the-Dip” Signal Flashes
Beneath the price volatility, on-chain data reveals a potentially opportunistic setup. The Realized Loss metric has dropped to -18%. Historically, when this metric falls below -37%, it has marked excellent accumulation zones for long-term buyers. While not at an extreme low, the current -18% level suggests investors are already absorbing sell-side pressure efficiently. This indicates that strategic holders are viewing this dip as a buying opportunity, not a reason to panic.
My Thoughts
This is a healthy reset. The market needed to purge the excessive leverage that built up hoping for a dovish fireworks show. The fact that Bitcoin price holds $90K after that flush is a strong sign. The on-chain data suggests this is distribution from weak hands to strong ones. While short-term technicals are messy, the macro backdrop hasn’t changed—rates are still moving lower, and liquidity is being added via the Fed’s T-bill purchases. This dip likely builds a stronger foundation for the next leg up toward $100,000, once the post-Fed positioning washout is complete.
