Bitcoin has regained the $93,000 level after a sharp recovery of 4% during the day, breaking a downward trend that lasted for several days and igniting renewed optimism in the market.
This move comes just one day before the highly anticipated interest rate decision by the Federal Reserve (Fed), and it is clear that traders are positioning themselves ahead of the announcement.
A closer look at the chart: Strong reversal after a deep pullback
The chart shows Bitcoin steadily declining over December 8 and 9, where it hit a low near $89,000 before registering a strong recovery in a V-shape.
The last hour of trading witnessed the bulk of this breakout, as Bitcoin (BTC) surpassed a resistance barrier and reclaimed the mid-$93,000 area.
Key notes from the chart:
* Sharp reversal during the day: After Bitcoin reached a low of around $89,000, it surged strongly, confirming the strength of buyers.
* Breaking short-term resistance: The rally pushed the price back above December's consolidation range, restructuring the bullish market.
* Increased trading volume with the rise: Buyers decisively entered during the final phase of the move, supporting the validity of the breakout.
This rebound comes simultaneously with several bullish fundamental factors aligning.
1. The Hash Ribbons indicator is flashing a buy signal, indicating the end of miner capitulation
Bitcoin's Hash Ribbons, one of the most respected long-term bottom indicators, have turned into a buy signal.
This typically occurs when miners finish the capitulation phase, a painful but historically bullish stage, as inefficient miners close down and network pressure eases.
Every previous buy signal from the Hash Ribbons indicator has been preceded by strong rallies lasting several months.
2. Institutional accumulation is increasing
Institutional players continue to add Bitcoin to their treasuries despite price volatility.
Major corporations, including 'Strategy' - one of the most aggressively accumulating firms - have been buying the dips and continuously absorbing the supply.
When institutions accumulate during correction phases, the market often forms sustainable lows due to reduced circulating supply.
3. ETF momentum is gaining strength again
Regulatory progress and ongoing inflows into Bitcoin-related financial products are boosting sentiment.
Several new Bitcoin exchange-traded funds have launched in recent quarters, and demand remains resilient. Even when flows temporarily cool, investor appetite consistently returns, reflecting the growing acceptance of Bitcoin as a major financial asset.
This structural shift continues to act as a strong support for the price.
4. Technical indicators point to a recovery phase
Momentum indicators also align with Bitcoin's sharp rebound:
* The MACD indicator is trending upwards, hinting at a bullish crossover.
* The price has remained stable above important Fibonacci retracement areas before sharply reversing.
* Recent lows formed a support block on a higher time frame, which is usually seen before significant continuity movements.
The technical picture now favors bullish momentum if Bitcoin can maintain strength above $92,000 - $93,000.
5. Markets are pricing in the Federal Reserve's decision for tomorrow
Investors are positioning themselves in anticipation of the Federal Reserve's interest rate decision announcement in December, with expectations heavily skewed towards a rate cut.
A dovish decision tends to weaken the dollar and strengthen risk assets, including Bitcoin.
The market is already pricing in this outcome, helping to explain the increase in buying pressure today.
If the Federal Reserve executes the expected cut, this could bolster Bitcoin's current breakout and push for further gains heading into the weekend.
Bitcoin outlook from now on
Recovering the $93,000 level puts Bitcoin in a bullish position ahead of a major macroeconomic catalyst.
If the price remains stable above this level, traders are likely to target the $95,000 - $97,000 range next, with psychological resistance at $100,000 back on the horizon.
Currently, all key components - on-chain blockchain signals, institutional flows, ETF momentum, technical structure, and macroeconomic forecasts - align in favor of Bitcoin.
