Bitcoin slipped below $107,000 on Thursday after the Federal Reserve cut interest rates by 0.25% and signaled uncertainty about any additional easing in December. Chair Jerome Powell’s comment that another rate cut is “not a foregone conclusion” caught many investors off guard, triggering a broader pullback in risk assets.
Crypto markets reacted quickly. Within hours of the Fed’s announcement, Bitcoin dropped over 3%, dragging down other major tokens like Ethereum and Solana. According to Coinglass, more than $1.2 billion in leveraged crypto positions were liquidated, with Bitcoin accounting for roughly a third of that. Trading volumes rose sharply, particularly on futures markets, as prices breached key support zones.
Sentiment Turns Cautious
Retail indicators have shifted. The Crypto Fear and Greed Index now sits at 34, deep in “fear” territory. According to data from Santiment, wallets linked to short-term holders have increased their selling activity, while price action has compressed into a narrow range just above $106,000.
However, some long-term holders appear to be accumulating. Glassnode reports a steady rise in the number of wallets holding more than 10 BTC, with accumulation addresses trending upward since mid-October. These wallets are typically less sensitive to short-term volatility.
Technical Analysis: Support in Focus
Bitcoin is currently testing the $106,000–$108,000 range, an area that has acted as short-term support over the past several weeks. A break below this level could trigger further losses, with the next major support zone near $103,000 – close to the 50-week moving average.
The Relative Strength Index (RSI) is at 39, indicating bearish momentum. The MACD histogram remains below zero, with no sign of an immediate bullish crossover. Bollinger Bands have widened, signaling increased volatility, and price has moved closer to the lower band – which can sometimes precede a rebound, though no clear reversal pattern has formed.
Volume trends are also notable. Sell-offs have been accompanied by rising volume, while attempts to recover have occurred on relatively lower volume. This typically suggests sellers are still in control of the short-term trend.
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What Comes Next?
Bitcoin remains above its long-term trend indicators, including the 200-day moving average, but short-term signals point to continued pressure. Reclaiming $110,000 with convincing volume would be an early sign of stabilization. Until then, volatility may remain higher, especially with market expectations now shifting toward fewer interest rate cuts in 2025.
