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Bitcoin has been trading quietly over the past few months. On the higher timeframes, the trend is still positive, but price movement has been slow and sideways. The market is taking a pause after strong swings earlier this year.


Market Overview

At the moment, Bitcoin is trading near $98,400, slightly down 1.25% in the last 24 hours after the latest Fed rate cut. The price briefly dipped to $96,800 before recovering above the $98,000 mark. Daily trading volume stands close to $62 billion, while the total market cap remains around $1.94 trillion with a 58% dominance.

Despite short-term weakness, Bitcoin ETFs continue to attract strong capital inflows, reaching a combined total of over $57 billion. This shows that large investors still see Bitcoin as a strong long-term asset.

Key Factors Behind the Move

The U.S. Federal Reserve reduced interest rates by 0.25%, bringing them into a 3.50%–3.75% range. While this move was expected, Fed Chair Jerome Powell’s statement that future cuts will be “data-dependent” caused short-term market hesitation. Traders reacted with a “sell-on-news” sentiment, leading to a mild drop.

At the same time, the Fed also mentioned that it may slow down its balance sheet tightening later this year, which could help inject more liquidity into global markets — a long-term positive for crypto.

Interestingly, Bitcoin’s correlation with the stock market has dropped, and it is now showing stronger alignment with gold — acting as a hedge during uncertain economic times.

Technical Analysis

Bitcoin is currently holding above $96,500 support, with the next key level around $94,000 if selling pressure increases. On the upside, resistance is seen near $101,200 and $104,500. A breakout above these levels may push the price toward $108,000 in the coming sessions.

The RSI is neutral at 52, showing neither overbought nor oversold conditions, while the MACD is slightly positive, hinting at slow bullish momentum. On the 4-hour chart, Bitcoin is forming a tight consolidation pattern, suggesting that a strong move could be ahead once volatility returns.

Market Sentiment and Risks

Traders remain cautious due to uncertainty about how quickly the Fed will move with the next rate adjustments. Exchange inflows have declined, showing that investors are holding rather than selling, but it also means smaller liquidity pools could increase price volatility.

Historically, Bitcoin tends to dip briefly after FOMC announcements but recovers within a few days as the market adjusts. Long-term sentiment stays positive, with investors expecting Bitcoin to remain strong above the $90,000 level and aim for new highs once market confidence returns.

In short, the market is taking a breath before the next big move ... patience and proper risk control will be key as Bitcoin builds its next direction.