Selling news? Bitcoin Market Shrugs from the Fed’s Movement: Analysis

Did you give it fatigue or just taste it? Bitcoin is just 1% today, and is currently trading at around $115,500, following the widely telegraphed quarterpoint rate cuts in the Federal Reserve.

The crypto market appears to be a bit vitrified, but if any, a relatively small drop in today’s prices could be interpreted as a classic “buy rumors and sell news” event.

The Federal Open Market Committee reduced the benchmark delinquency rate by a quarter percentage point on a 11-1 vote, and placed the one-night funding rate in the range of 4.00% to 4.25%.

Rate reductions are usually bullish for risky assets, but the market appears to have been priced at this move for a few weeks and showed little enthusiasm. Bitcoin, for example, has failed to surpass the psychologically significant $117,000 level after being touched temporarily today.

According to data from CoinMarketCap, the overall Crypto market remains above $4 trillion, but average performance for the top 20 cryptocurrencies has fallen by 0.43%, while still below 1% in the last 24 hours. Therefore, there is no FOMO yet from the mitigation of FOD. The Crypto Fear and greedy index remains almost completely neutral at 51 points, down six points from last week’s greedy mood.

Federal Reserve Chair Jerome Powell may consider the cut as “risk management” and explain the market’s lukewarm response, rather than focusing on reinforcing the weakness of the economy. With a 96% chance of the 25 basis point cut already priced before the announcement, traders seem to be running the classic “Buy Rumors and Sell News” playbook.

The political drama surrounding the Fed’s decision added another layer of uncertainty. Newly established Governor Stephen Milan – The widely recognized pro-Trump economist who advised him during his previous tenure is the only policymaker to oppose the quarterpoint move, instead Even bigger Half point cut.

Bitcoin (BTC) Price: Consolidation continues

So, what can we collect from today’s Bitcoin chart?

BTC’s daily charts show that price actions have been traded sideways since June, but they have an upward trajectory that has never been more recent.

Bitcoin opened today at $116,836, but immersed in a low of $114,747 shortly after the Fed’s announcement, bouncing back to its current price that day due to a net loss of less than 1%.

Bitcoin price data. Image: TradingView

Bitcoin’s relative strength index (RSI) is at 58 in neutral to bullish territory. RSI measures price momentum on a scale of 0-100, with values above 70 indicating excess conditions, while under 30 implying overselling levels. Bitcoin has gained some momentum since falling below average price in the last 50 days of $110,000 in late August

Currently, the average directional indicator, or ADX, which measures the intensity of trends regardless of direction of BTC, is currently 18 years old. This indicates that for traders, the market is essentially neutral. Traders are basically waiting for the catalyst to establish their next major move. (Everyone under the age of 25 tells traders that the trend is not really in place.)

This usually means that range-bound transactions last until a blow occurs at a new all-time high or breakdown, under $104,000, the average price of Bitcoin over the past 200 days.

It is these exponential moving averages, or Emma, that provide a faint light of hope.

Until a few days ago, the 50-day EMA (average price for trading days over the last 50 days) and the 200-day EMA began compression, hinting at a potentially bearish period. This bounce was enough to increase the gap. In other words, Bitcoin is still in bullish formation. Slowly, yes, but nevertheless, bullish.

The key question now is whether two more cuts before the Fed year end is sufficient to rekindle the risk appeal, or whether concerns about sustained inflation and political interference at the central bank will stand by buyers.

On the countless, predictors are bullish. Users of the forecast market developed by DecryptionParent company Dastan places the odds at 61%, reaching $125,000 before Bitcoin continues to rise and returns to $105,000. They also believe that 80% chance Bitcoin is over $105,000 throughout September.

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