Bitcoin Rebound Stalls at 4% as Rate-Cut Mood Dominates ETF Buzz — What’s Next For Price?

Bitcoin’s latest rebound has been unusually weak. After dipping to the $85,970 zone, the Bitcoin price bounced just 4% before stalling near $89,380. That BTC price move came despite fresh ETF headlines and signs of technical stabilization. The problem is timing. Rate-cut optimism is near zero heading into the Federal Reserve decision, and macro caution is overpowering short-term bullish signals. With Bitcoin trading flat across most timeframes, the market is waiting for a clear trigger. Divergence Failed to Spark Momentum as Rate-Cut Mood Overpowered ETF Buzz On the daily chart, Bitcoin flashed a hidden bullish divergence between December 18 and January 25. Price formed a higher low, while the Relative Strength Index (RSI) printed a lower low. RSI measures momentum strength. When RSI weakens while price holds higher ground, it often hints at a rebound. That signal did work, but only briefly. The BTC price bounce stopped around 4%, topping out near $89,380 before sellers returned. Hidden Bullish Divergence: TradingView Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. This muted reaction matters. Around the same time (between January 25 and January 26), ETF optimism picked up following BlackRock’s filing for a Bitcoin premium-income ETF. Usually, ETF headlines help extend rebounds. This time, they didn’t. BlackRock just dropped the official S-1 for it's upcoming iShares Bitcoin Premium Income ETF.. no fee or ticker yet. The strategy is to "track performance of the price of bitcoin while providing premium income through an actively managed strategy of writing (selling) call options… pic.twitter.com/CZDahm4mNj— Eric Balchunas (@EricBalchunas) January 26, 2026 The missing ingredient is macro support. Polymarket now shows a 99% probability of no rate change at the upcoming FOMC meeting. With hopes of a rate cut absent, liquidity expectations remain tight. That environment limits follow-through, even when technical si...