- Bitcoin consolidates between last week’s high and low as daily MACD forms a bearish crossover, indicating a shift in short-term trend momentum.
- The Fair Value Gap between $88,000 and $91,500 now draws attention, as traders anticipate a liquidity-fill move before Bitcoin resumes bullish trajectory.
- Binance metrics reveal open interest dropped by 37% and negative funding rates, indicating growing derivative short pressure amidst ongoing spot accumulation phase.
Bitcoin is trading below $95,000 as of writing, with price action locked between last week’s high and low. Traders are now awaiting direction from the Federal Reserve’s upcoming FOMC decision and Jerome Powell’s speech.
Bitcoin Price Eyes Fair Value Gap as MACD Weakens
Bitcoin is showing early signs of a short-term correction after reaching a recent high near $96,000. According to Titan of Crypto, the asset is now consolidating between the previous week’s high and low. Price action has shifted downward, with a move toward the Fair Value Gap (FVG) zone between $88,000 and $91,500 appearing likely.
The FVG, marked on the daily chart, represents a low-liquidity region created during a sharp rally. These areas often attract price during retracements, as markets revisit zones of imbalance. Bearish candles and declining momentum point to a possible test of this range.
Technical indicators now reflect caution. A bearish crossover has formed on the daily MACD, with the signal line overtaking the fast line. Shrinking histogram bars confirm that momentum is cooling. The setup suggests that a short-term dip may occur before any upward continuation.
FOMC and Interest Rate Cut Odds Add Uncertainty
Investor sentiment is focused on the upcoming FOMC meeting. Crypto Seth noted a 4.5% chance of a 25 basis point interest rate cut. Although a cut remains unlikely, even small probabilities are influencing short-term positioning.
Market participants are now watching for clues from Jerome Powell’s remarks. Traders seek signals on inflation control, rate direction, and economic stability. Any change in tone could trigger increased volatility across the crypto market.
Short-term caution dominates the current trading environment. Price remains range-bound as buyers and sellers await macroeconomic guidance. Volatility may increase as the FOMC outcome nears.
Spot Accumulation Continues Despite Derivatives Weakness
FundingVest shared that Binance data shows increased short pressure. Open interest has dropped 37%, and funding rates have turned negative. This suggests growing hedging or bearish sentiment among futures traders.
However, spot market behavior paints a different picture. Spot accumulation continues, with spot prices currently trading above perpetual contracts. This divergence may signal a potential market reset or preparation for the next upward move.
The current mix of bearish indicators and steady spot demand reflects a transitional phase. Traders now await further developments to determine whether the recent uptrend can regain momentum.
