Analysis: Expectations for a Fed rate cut in December rekindle, Bitcoin holds above $86,000, mainstream tokens recover in sync, is the downtrend coming to an end?

After a slight rebound in Bitcoin prices over the weekend, it maintained the 86,000 USD mark on Monday. Previously, Bitcoin prices had significantly fallen last week, dropping to a several-week low. The overall performance of the Crypto Assets industry was slightly better, rising about 1% in the past 24 hours. This trend indicates a cautious shift in market sentiment after several days of dumping and large-scale liquidations.

Mainstream coins such as Ethereum, XRP, Solana, and Dogecoin have also seen slight rises this week. These Crypto Assets are currently above major support levels, indicating that the recent Rebound momentum may continue. However, analysts warn that market sentiment remains weak, and once market momentum begins to wane, it can be easily impacted.

Traders are also closely monitoring signals from the Federal Reserve. Fed Chairman Jerome Powell may propose the idea of another 25 basis point rate cut at the December meeting. Currently, there are still differences among Fed officials, and the final decision remains difficult to determine. Powell's positive attitude may improve the financial situation and could potentially push up the prices of risk assets such as Bitcoin.

The price of Bitcoin has risen to $86,800 and has maintained a narrow range after a significant dumping recently. The sharp fall in the market earlier this week has formed stable support above $86,000.

From a technical perspective, the MACD histogram has also turned positive, indicating an increase in upward momentum. Both MACD indicators have crossed upwards, suggesting that demand has improved after a recent pullback. The RSI indicator is around 47, indicating that the market is in a neutral and slightly rising trend.

If the Bitcoin price breaks through the resistance level of 90,000 USD, it may further push up to 92,000 USD. If the price continues to rise strongly, the 100,000 USD area may become the mid-term target again, as the long-term outlook for Bitcoin remains optimistic. (CoinGape)