Is Bitcoin Price Set for Major Recovery as December Rate Cut Chances Hit 80.9%?

Coingapestaff
Updated
Coingapestaff

Coingapestaff

Journalist
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Read full bio
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Federal Reserve officials discuss December rate cut expectations as markets assess a potential major Bitcoin recovery.

Highlights

  • Fed officials support a December rate cut, strengthening the broader Bitcoin price outlook.
  • A top analyst’s reversal structure mirrors 2021, signaling improving conditions for BTC.
  • Daily chart reaction shows firm channel support as long-term BTC price performance steadies.

The Bitcoin price starts the week with a calmer tone as markets settle after a turbulent stretch. Sentiment picks up slightly as traders shift their focus toward fresh macro expectations and easing probabilities. 

Furthermore, the broader environment now reflects a more measured approach, with investors weighing both risk and opportunity. Meanwhile, pockets of stability begin to appear across the charts as short-term signals strengthen and volatility compresses.

Fed Cut Odds Shape BTC’s Path As Macro Winds Shift

Fresh rate expectations influence the BTC price as markets assign an 80.7% chance of a cut toward the 350–375 bps range. The surge comes days after Fed Governor Chris Waller advocated for a December rate cut, citing labor-market weakness. 

This sharp tilt toward easing supports risk assets during a period of cautious rebuilding. Meanwhile, the current Bitcoin value trades at $87,456, offering a clear benchmark for market reactions when macro signals shift.

Furthermore, easing expectations create room for BTC to regain stability after weeks of pressure. Traders study how these odds align with the broader structure, especially as liquidity improves across key pockets of the market. Additionally, each shift in policy expectations often triggers faster adjustments in crypto due to its sensitivity to macro liquidity.

These combined signals now define a critical window for the coming weeks. BTC price reactions will likely continue to follow macro cues closely, and this alignment strengthens the potential for a steady rebound if conditions remain supportive.

December Fed Rate Cut Probability Chart (Source: FedWatch)

Reversal Structure Resurfaces As Bitcoin Tests A Pivotal Breakout Zone

A top analyst highlights a structure that mirrors the 2021 bear setup, and the resemblance appears striking. The descending trendline, compression slope, and support behavior align closely with that earlier cycle. 

However, Bitcoin now protects the $82K region instead of slicing below it, and this creates a stronger base for a possible reversal. Each small rise also forms a cleaner staircase pattern compared to the sharp breakdown seen in the previous cycle.

Additionally, the chart displays a potential reversal pocket where BTC coils beneath the trendline. The shape shows controlled intent rather than panic-driven swings. 

Furthermore, this symmetry builds confidence as Bitcoin moves into a zone where breakouts historically shift broader sentiment. The gentler retest also reduces structural stress, giving BTC more breathing room.

This setup now carries meaningful weight. A break above the trendline could shift the wider narrative into a constructive phase, especially as the structure aligns with key cyclical markers.

BTC price action
BTC/USD 2-Week Chart (Source: X)

Bitcoin Price Eyes Breakout As Daily Chart Flashes Fresh Strength

The 1-day chart presents a clean reaction near the lower channel boundary. Bitcoin tapped the $84,600 region and bounced with noticeable precision. Meanwhile, the upper boundary sits near $93,534, marking the next key breakout point that could spark stronger continuation.

Furthermore, the MFI stays at 16, placing BTC deep in oversold territory. This value supports the idea of a steady recovery attempt as pressure eases. The green projection on the chart outlines a staged move toward $108,020 and later $125,000, with each phase respecting clear resistance shelves.

Additionally, this structure favors controlled advances rather than aggressive spikes. BTC forms cleaner higher lows, and these steps build a stronger base for long-term BTC price performance. The interaction between oversold readings, channel boundaries, and projected paths creates a cohesive recovery map.

Bitcoin price action
BTC/USD 1-Day Chart (Source: TradingView)

To conclude, Bitcoin enters a more constructive phase after defending its lower channel. Fed cut expectations strengthen this outlook and support gradual price rebuilding. A top analyst’s structure comparison adds further confidence with its clean cycle resemblance. Overall, BTC prepares for a clearer upside path as technical and macro signals begin to align.

Advertisement

Frequently Asked Questions (FAQs)

1. Why does the Fed’s policy stance matter for Bitcoin?

It influences liquidity conditions, which shape how investors position around crypto risk assets.

2. What makes the current BTC structure different from the 2021 setup?

Bitcoin defended its macro base instead of breaking below it, creating a more stable reversal foundation.

3. How does the MFI reading contribute to market sentiment?

A low MFI shows heavy oversold pressure, which often signals that sellers may be exhausted.
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

BTC

Bitcoin

$86,309.8837 -0.78%

24 Hours volume

$45.65B

Market Cap

$1.72T

Max Supply

21M

Buy $BTC with MEXC
About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.