The cryptocurrency sector is showing skepticism toward the Federal Reserve’s recent policy move. Although the Fed implemented a predicted 25 basis point reduction, bringing rates down to between 3.5% and 3.75%, both Bitcoin and Ethereum have declined in value, with the overall crypto market capitalization dropping to $3.07 trillion—a decrease of approximately 2.25% compared to the previous day.
In contrast to traditional financial markets that responded positively—the S&P 500 rose by 0.67%, and Nasdaq increased by 0.42%—digital currencies experienced significant losses, highlighting a divergence in investor sentiment that may indicate concerns about future liquidity despite cheaper borrowing costs.
Data from CoinMarketCap reveals that nearly ninety percent of cryptocurrencies are trading lower today, including several top ten assets suffering double-digit percentage declines.
What insights can we gather from current market charts? Let’s analyze:
Bitcoin (BTC) Price Analysis: Downward Momentum Persists
Bitcoin currently trades around $89,977, marking a decline of roughly 2.24% over the last day. After peaking near $92,103 earlier in the session, selling pressure pushed prices back below the psychologically important $90K threshold—confirming prior assessments that recent upward moves were temporary spikes rather than sustained trend reversals within an ongoing bearish phase.
The price continues to respect a descending trendline established since October’s high near $126K—a level now feeling distant as BTC struggles for support at key psychological levels.
From a technical standpoint: Bitcoin remains entrenched below its exponential moving averages (EMAs), specifically beneath both its short-term (50-day) and long-term (200-day) averages—a condition known as a “death cross,” which often signals persistent downward momentum for traders monitoring trend shifts through smoothed price data.
This rejection above the EMA50 coupled with failure to breach resistance near $100K reinforces bearish dominance in price action.
The Relative Strength Index (RSI), measuring momentum on a scale from zero to one hundred where values under fifty suggest selling pressure outweighs buying interest, currently stands at approximately forty-four—indicating moderate bearishness but not yet oversold conditions attractive enough for aggressive buyers who typically await RSI readings below thirty before entering positions expecting rebounds.
The Average Directional Index (ADX), which quantifies trend strength regardless of direction—with readings above twenty-five indicating strong trends—is presently around twenty-eight point one five for Bitcoin; this confirms sellers maintain control amid robust downward movement rather than sideways or indecisive trading ranges.
Despite these technical headwinds among traders generally leaning negative on short-term prospects, a majority remain optimistic longer term according to Myriad prediction markets operated by Decrypt’s parent company Dastan: roughly sixty-nine percent wager on BTC reaching one hundred thousand dollars before falling back toward sixty-nine thousand dollars again.
A further notable insight comes from Myriad’s poll regarding whether another “Crypto Winter” lies ahead—with ninety percent betting against such an outcome—suggesting while volatility shakes confidence temporarily, underlying faith endures strongly among many participants.
Ethereum (ETH) Price Update: Bulls Facing Resistance
Ethereum has endured sharper losses today, down about four point four zero percent settling near three thousand one hundred seventy-eight dollars. The second-largest digital asset opened higher at three thousand three hundred twenty-four but slid over one hundred forty-six dollars during trading sessions hitting lows just above three thousand one hundred forty-six before stabilizing somewhat.
Unlike Bitcoin’s continued weakness, Ethereum flirted briefly with forming what’s called a golden cross pattern—the bullish counterpart — a crossover signaling potential upward momentum—but ultimately failed.
ETH managed surpass immediate resistance lines including its fifty-day EMA but couldn’t sustain gains beyond its two-hundred-day EMA barrier: a critical hurdle suggesting prevailing long-term bearish structures remain intact without decisive breakout confirmation needed for sustained rallies.
The RSI reading hovers just above neutral territory at fifty-one point two four, a zone representing indecision between buyers and sellers based purely on momentum metrics alone.
Other indicators reinforce cautious sentiment: a -41% bearish score across multiple strategies including Ichimoku cloud expansion into red zones,&&&& descending channel formations,& and volume profiles concentrating trades mostly around higher levels — implying many holders are underwater currently.