Selling BTCUSD amid expectations of Fed hawkish comments

BTCUSD has entered a correction and is now trading near $89,900 following its unsuccessful attempt to consolidate above $92,500. The market is feeling jittery in anticipation of the Federal Reserve’s (Fed) meeting on December 10–11. Although traders have already priced in a potential rate cut, concerns about the regulator’s future monetary moves persist. Hawkish comments from Fed officials could shatter investor expectations for sustained monetary easing.

Stubborn inflation and resilient economic conditions in the United States are key headwinds for the rate-cutting cycle in 2026, bolstering the dollar and Treasury yields. In this environment, risky assets like cryptocurrencies lose their appeal. Institutional demand, another key pillar of support, is also weakening, with a recent net outflow of $60.5 million from BTC ETFs.

In the meantime, positive catalysts, such as regulatory approval for crypto trading, appear to have had no immediate bullish impact. Instead, bearish stress factors are dominant. The Bitcoin Hash Ribbon indicator is flashing warning signs, suggesting BTC miners are under pressure, while short-term holders are facing losses. These headwinds are reinforced by weak US housing market data and job cuts.

The technical setup confirms the current correction after the recent surge. The Chaikin Oscillator points to slowing accumulation and waning bullish momentum. Meanwhile, the Stochastic Indicator paints a mixed picture without a clear trend, despite a brief intraday crossover of its lines from bottom to top. Ultimately, fundamental factors align with technical signals, underlining buyers’ exhaustion.

Take a look at the following trading strategy:

Sell BTCUSD at the current price ahead of the Fed rate decision. Place Take profit at $85,000 and Stop loss at $94,500.

This forecast remains relevant between December 9 and December 16, 2025.