Bitcoin and Ethereum Decline Following Fed Rate Cut Despite Bullish Sentiment
The Federal Reserve delivered a widely expected 25-basis-point rate cut, lowering rates to a 3.5%-3.75% range. Following the announcement, Bitcoin and Ethereum prices traded lower while traditional stock indices showed modest gains, with the S&P 500 rising 0.67% and the Nasdaq up 0.42%.
Bitcoin was priced around $89,977, down 2.24% over the past 24 hours, with an intraday high near $92,103. The cryptocurrency tested the $90,000 level but remained in a downtrend, respecting a descending trendline originating from its October peak near $126,000. Bitcoin continues to trade below its 50-day and 200-day exponential moving averages (EMAs), with a death cross pattern in effect. Past attempts to surpass the 50-day EMA at roughly $100,000 have failed. Technical indicators showed bearish momentum, with the relative strength index (RSI) at 44.23 and average directional index (ADX) at 28.15 confirming a real downtrend rather than sideways trading.
Despite the bearish technical picture, sentiment data from Myriad indicates that 69% of the market remains bullish on Bitcoin reaching $100,000 before falling to $69,000, reflecting long-term conviction amid short-term volatility.
Ethereum's price was around $3,178.8, down 4.40% after opening at $3,324.3 and dipping to a low of $3,146.4. ETH briefly cleared its 50-day EMA but failed to sustain above its 200-day EMA, pointing to a persistent bearish structure. The RSI for Ethereum stood at a neutral 51.24, and the Ichimoku cloud remained red with price action confined to a descending channel and underwater holders.
Sentiment odds for Ethereum shifted from a prior 90% expectation of a drop to $2,500 to a more balanced 50-50 chance between a pump to $4,000 or a dump to $2,500, indicating uncertainty over its near-term direction.
