Bitcoin bounces to $90,500 after testing key support of $89,200

Market Overview - Bitcoin (BTC) has rebounded to $90,500 after dropping to approximately $89,300, following a peak near $95,000 earlier in the week, indicating a pullback influenced by profit-taking and lighter trading volumes [1] - The market's inability to break the $95,000 resistance level has led to two-way trading, with ETF outflows dominating recent sessions [2] Federal Reserve Impact - Expectations for a near-term rate cut by the Federal Reserve have declined, with the probability of an easing at the January 28 meeting now at 11.6%, down from 15.5% a week ago and 23.5% a month ago [3] Technical Analysis - Bitcoin is currently testing the 50-day moving average, which is at $89,200, the level at which it bounced today [4] Derivatives Market - Open interest in bitcoin futures and options has reached a three-week high of nearly 700,000 BTC, an increase of about 75,000 BTC since the start of the year, indicating that traders are adding exposure [5] - Positive perpetual futures funding rates at around 0.09% suggest that long positions are paying shorts, and the persistent positive funding during pullbacks indicates continued buying of dips using leverage [6]