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The final Federal Reserve meeting of the year started on nine December and most traders expected a small rate cut of twenty five basis points. Only a few thought there could be a bigger cut. Lower rates normally help the economy because borrowing becomes cheaper and the Fed has already cut rates in September and October.

A futures trader named Ardi shared that a rate cut is not always good for Bitcoin right away. When the Fed cut rates in September and October the price of Bitcoin fell by eight percent and twelve percent after the news. He said the market often moves early. Traders buy before the news and take profit once the announcement is made. Because of this the rally is usually finished before the meeting even starts.

Bitcoin jumped more than five percent on Tuesday and went up to ninety four thousand. But the price did not break through the supply zone that has been holding since mid November. The buying pressure is rising slowly but it is not clear if it is strong enough to push Bitcoin above this level. The four hour chart shows a bullish break but the market still needs more strength to get through ninety four thousand.

On the one hour chart the bullish signs are still there but there is an imbalance that stretches down to ninety thousand six hundred. This is an area where the price might fall to fill the gap. If Bitcoin wants to turn fully bullish the price needs to move past ninety six thousand. Then a pullback to the ninety four to ninety five range could give buyers a chance to enter again.

Right now the bearish case looks more likely. The retest around ninety two thousand five hundred did not show strong demand. This makes a short dip toward ninety thousand six hundred very possible. A break below ninety thousand six hundred and eighty nine thousand nine hundred would be the first sign that a deeper drop is starting. If that happens Bitcoin could fall to eighty eight thousand or maybe even eighty four thousand before it begins to recover.

Traders should stay calm and avoid rushing into trades. The earlier rate cuts did not lead to strong lasting Bitcoin rallies because the larger trend was still down. For now it is safer to stay neutral or slightly bearish. If Bitcoin can break above ninety six thousand then the picture changes. But until that happens caution is the smarter option.
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