Bitcoin is above key support, so why are momentum signals getting worse?

<a href="https://xpertsstudio.com/is-the-clarity-act-really-not-needed-for-bitcoin-price-to-rally/” title=”Is the CLARITY Act Really (Not) Needed for Bitcoin Price to Rally?”>Bitcoin ($BTC) is trading above $76,300 on Thursday, stabilizing after the Federal Reserve raised its benchmark interest rate by 25 basis points.

$BTC remains above a critical cluster of moving averages despite falling approximately 3% on Tuesday.

This positioning preserves its broader bullish structure, although weakening momentum indicators suggest buyers have yet to regain firm control.

Meanwhile, privacy-focused cryptocurrencies Zcash and Dash outperformed the wider market with double-digit gains over the past 24 hours.

Bitcoin stabilizes following Fed rate increase

Bitcoin held near $76,000 after the Federal Reserve tightened monetary policy by a quarter percentage point.

The Federal Open Market Committee increased its benchmark federal funds rate range by 25 basis points to between 3.75% and 4%. The widely expected rate hike received unanimous support from policymakers.

Officials said US economic activity continues to expand at a solid pace, supported by resilient domestic spending.

However, the apex bank acknowledged that uncertainty remains elevated, partly because of geopolitical developments.

Inflation also remains above the Fed’s 2% target. Policymakers said the rate increase would support a more timely return to price stability.

The relatively muted price reaction suggests the increase was largely anticipated by traders.

However, Bitcoin’s ability to remain above major technical support levels indicates that the rate decision has not triggered another significant wave of selling.

Higher interest rates can pressure cryptocurrencies by raising the appeal of yield-bearing assets and reducing liquidity available for riskier investments.

Bitcoin’s next move may therefore depend on the Fed’s forward guidance and expectations for additional tightening.

$BTC holds above major moving averages

Bitcoin remains above its 50-day, 100-day and 200-day exponential moving averages. The 50-day EMA stands near $73,695, while the 200-day EMA is positioned at approximately $73,237. The 100-day EMA sits lower at $71,495.

Trading above all three indicators keeps Bitcoin’s broader trend constructive despite the recent correction.

The cluster between approximately $71,500 and $73,700 also creates a significant support zone that could attract buyers during further pullbacks.

A decisive break below these moving averages would weaken the bullish structure and increase the risk of a deeper correction.

Bitcoin’s Relative Strength Index is hovering near the neutral level of 50 on the daily chart.

The reading suggests neither buyers nor sellers currently possess a decisive advantage.

However, the Moving Average Convergence Divergence indicator continues to decline beneath its signal line, reflecting fading bullish momentum.

Together, the indicators point to consolidation rather than a confirmed recovery. Bitcoin may require stronger buying volume to break out of its current range.

If $BTC extends its recovery, the descending overhead trendline near $82,850 represents the first major resistance.

A sustained breakout above that level could allow Bitcoin to target the 78.6% Fibonacci retracement at $87,476.

This level is measured from the decline between $97,924 and $57,800 and could attract significant profit-taking.

On the downside, the 50% Fibonacci retracement at $75,233 provides immediate support. Holding above this level would keep the near-term outlook stable.

If $75,233 fails, attention would shift to the 50-day EMA at $73,695 and the 200-day EMA at $73,237. These moving averages form Bitcoin’s next major defensive zone.

Source: cryptonews.net