The price of Bitcoin is approaching a critical resistance level, just 2% shy of challenging the key trendline within a falling channel pattern. Recent macroeconomic indicators, including a pause in quantitative tightening and a decrease in ADP employment figures, have augmented market expectations for a 25-basis-point interest rate cut at the upcoming Federal Open Market Committee (FOMC) meeting scheduled for December.
During the U.S. market session on Wednesday, Bitcoin saw an increase of 2.53%, trading at $93,626. This uptick in buying pressure is likely to continue as investors anticipate a potential rate reduction, especially following an unexpected decline in the ADP Employment Report. This report revealed a surprising drop of 32,000 positions in the private workforce for November, significantly underperforming predictions that forecasted an addition of 10,000 jobs.
In the last two days alone, Bitcoin experienced a notable rebound, rising from $86,190 to $93,486, marking an impressive 8.45% increase. This momentum was triggered by the Federal Reserve”s decision to halt its quantitative tightening measures on December 1, thus initiating a liquidity expansion that counters a previous policy which removed $3.2 trillion from the market.
The release of the ADP Employment Report has further fueled this bullish sentiment, as it highlights a trend of slowing employment growth that has persisted since mid-2025. Financial markets are currently pricing in an 89% likelihood of a quarter-point interest rate cut during the December 18th FOMC meeting, which could ease financial conditions and bolster overall economic activity.
Despite this upward trajectory in Bitcoin prices, new investment flows have significantly decreased, dropping over 50% from $15 billion to $6.85 billion within the past week. This data, highlighted by analyst Ali Martinez, suggests that the recent price surge may be largely influenced by macroeconomic developments rather than fresh capital inflows or repositioning by existing investors. As a result, there exists a cautious sentiment among traders, rendering this rally potentially fragile and susceptible to losing momentum if prevailing trends continue.
Currently, Bitcoin has stabilized above the $84,000 mark following a recent correction, rebounding from a low of $80,537 to its current price of $93,087, achieving a noteworthy surge of 15.58%. This recovery has established a new high-level formation on the daily chart, indicating a shift in market dynamics.
The momentum indicator, Relative Strength Index (RSI), supports the bullish outlook, transitioning from bearish to neutral territory and currently residing at 48%. Should buying pressure persist, Bitcoin could rise another 2% to confront the upper boundary of the declining channel pattern. Since October 2025, two downward-sloping trendlines have consistently influenced Bitcoin price movements as dynamic resistance and support levels. A successful breakout from this pattern would reinforce buyer confidence for a sustained recovery that could see prices exceed $100,000.
Conversely, if sellers maintain their defense of the overhead trendline, a retracement could occur, prolonging the current correction trend.
In related news, Taiwan has confirmed plans for its inaugural regulated stablecoin launch in 2026.
