Bitcoin Target $94K Surge Before Key FOMC Rate Cut Decision
Last week was quite the roller coaster, as bears pushed the price down to the $84,000 support level early in the week, only for bulls to step in and rally it back up to the $94,000 resistance level. Following that, the price experienced another decline, dipping just below $88,000 on Sunday morning, before witnessing a slight rally to finish the week at $90,429. This week, bitcoin enthusiasts are keenly awaiting the FOMC meeting on Wednesday, hoping for a much-anticipated rate cut that could enhance the investment landscape for bitcoin and other assets. For the bulls, surpassing $94,000 will be crucial this week if they aim to influence the market more significantly in their direction. Bitcoin wrapped up the week with a doji candle on Sunday, signaling a standoff between buyers and sellers. The short-term outlook appears to lean towards the bulls, who are aiming to break through the $94,000 resistance level. If this level can be established as support, the focus will shift to $101,000 as the next significant resistance level, while sellers are expected to start slowing momentum above $96,000.
Surpassing $101,000, the next targets are $104,000, followed by a resistance area ranging from $107,000 to $110,000. Resistance becomes significantly strong above $100,000. Bulls are keeping a close eye on support levels, with $87,200 being crucial for daily closes to prevent another test of the $84,000 support level beneath. Any additional approaches to $84,000 will diminish its strength and reduce the likelihood of it holding as a support level. The $72,000 to $68,000 support zone is expected to provide a cushion for the price if it falls below this range. Should the price dip below $68,000, we can expect some volatility, but it is anticipated to maintain support at the 0.618 Fibonacci retracement level of $57,700. Testing this lower level seems improbable for at least several weeks, assuming it even materializes.
Early this week, short-term momentum appears to slightly favor the bulls. The relative strength index on the daily chart is indicating some positive momentum, producing higher highs from the 13 SMA support level. This week, bulls are eyeing the 13 SMA to maintain its role as support, aiming to propel the RSI above 60 and into bullish territory. Bulls must maintain their position above support levels as we approach Wednesday’s FOMC meeting, giving them a shot at reaching higher levels in anticipation of a rate cut. If the FOMC meeting catches everyone off guard with no announcement of a rate cut, anticipate that the $84,000 support level will likely break down. The bearish cross currently observed on the monthly MACD oscillator is expected to exert downward pressure on prices throughout December and likely into January, unless there are significant upward movements to reverse this trend.
Bitcoin’s price must persist in its upward trajectory and secure closes above the 100-week simple moving average (SMA), currently positioned at $84,700 as we move into this week. Despite the bulls’ efforts to maintain momentum in the upcoming weeks, significant resistance looms at $110,000 and beyond. The price is highly likely to experience a pullback from that level (or lower) on the weekly chart. Executing this move would establish a compelling lower high on the weekly chart, granting the bears fresh confidence that a longer-term top is firmly established.
