**Bitcoin Price Faces Bearish Reversal from Key Resistance Trendline, Signaling Potential Downturn**
The Bitcoin price is currently encountering a bearish reversal from the key resistance trendline of a falling channel pattern, indicating a potential downturn ahead. On December 10, the Federal Reserve approved a 25-basis-point rate reduction, setting the federal funds target range at 3.5% to 3.75%.
On-chain data reveals that BTC whales have exited their long positions and opened new short positions, adding to the bearish sentiment. On Wednesday, Bitcoin exhibited low volatility with a neutral candle formation near $92,488. The coin initially surged to an intraday high of $94,500; however, the Federal Reserve’s rate cut announcement acted as a sell-the-news event among market participants.
The presence of overhead supply, combined with crypto whales entering short positions, suggests the risk of a sideways trend or an extended correction in the near term.
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### Fed Cuts Rates but Signals Near-Term End to Easing
During the Federal Open Market Committee (FOMC) meeting on December 10, 2025, the Fed lowered the federal funds rate by 25 basis points to a range of 3.5%–3.75%. This move marked the third consecutive rate cut, but officials indicated that the rate cuts may soon come to an end, with only one more reduction expected in 2026.
Despite the rate cut, the Fed maintained its forward guidance and described the action as restrictive. Starting December 12, the Fed plans to purchase $40 billion in Treasury bills, including those maturing up to three years, aimed at managing reserves rather than engaging in quantitative easing.
In a subsequent briefing, Fed Chair Jerome Powell adopted a softer tone than expected. He noted that the cumulative 75 basis points of easing since September had brought policy to a balanced point, allowing the Fed to pause and wait for incoming data. Powell described the decision as “decidedly close,” citing a slowdown in employment shifts and the yet-to-be-reflected impact of artificial intelligence on workforce figures.
He also mentioned that monthly job additions might be overstated by approximately 60,000, raising the prospect of mild employment contractions since spring, with risks leaning negative due to trade barriers contributing to excess price pressures.
The Treasury bill purchases are expected to continue at elevated levels for several months.
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### On-Chain Insights: Whales Turning Bearish
Insights from Aphractal’s CEO, Joao Wedson, reveal that large investors are unwinding their bullish bets after strong accumulation phases and are now initiating bearish trades. Conversely, smaller market participants are moving in the opposite direction.
This dynamic mirrors trends observed between February and April 2025 and suggests that Bitcoin’s price may trade within a narrow range for a prolonged period, beyond typical market forecasts.
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### Bitcoin Price Sparks Fresh Reversal from Channel Resistance
As of now, Bitcoin trades around $92,200, displaying a neutral to bearish candle with an intraday loss of 0.5%. The long wick rejection on the daily candle aligns with the resistance trendline of a falling channel pattern.
Over the past two months, Bitcoin has been in a steady downtrend, moving between the two downsloping boundaries of this channel. Historically, price reversals at the upper boundary of this channel have reignited bearish momentum, often leading to deeper corrections toward the lower boundary.
Additionally, Bitcoin is currently trading below its key exponential moving averages (20, 50, 100, and 200), which further reinforces bearish market sentiment.
If supply pressures persist at this resistance level, Bitcoin’s price could plunge below $89,500, signaling a potential significant downturn. The post-reversal decline could drive BTC down by another 20% to reach the $73,100 support level.
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**Summary:** Bitcoin faces increasing resistance after the recent Federal Reserve rate cut, with large investors turning bearish and technical indicators pointing to a potential extended correction. Traders should watch for key support and resistance levels as the market navigates this uncertain period.
https://www.cryptonewsz.com/bitcoin-channel-whale-shorting-intensifies/