Bitcoin Falls to $112K Amid Fed Cuts and $93K CME Gap
Bitcoin has slid roughly 10% from its all-time high, stabilizing around $112,000 after dipping to $110,000. Analyst Doctor Profit warns that the Federal Reserve’s anticipated rate cut in September could trigger a broader market correction, affecting stocks and cryptocurrencies alike. Technical indicators underscore bearish pressure: a significant CME futures gap near $93,000 needs filling, liquidity clusters around $90,000–$95,000, and a double-top chart pattern is confirmed by declining trading volume. Doctor Profit also notes that the recent peak at $124,000 was driven by futures activity rather than spot buying. On-chain data reveal retail investors tend to buy at highs and sell at lows, whereas institutions capitalized on the $110,000–$98,000 dip. As Bitcoin approaches the key liquidation zone of $90,000–$95,000, a shakeout may ensue. While false optimism for an altcoin season persists, major players could offload positions, exposing smaller traders. Post‐correction targets remain bullish long term: Bitcoin could revisit $145,000–$150,000, and Ethereum may climb to $7,000–$8,000.
Bearish
The combination of a looming Federal Reserve rate cut and a large CME futures gap near $93,000 creates strong bearish pressure on Bitcoin. Historically, rate cuts introduce uncertainty as investors reposition, often leading to short‐term sell-offs in both equities and crypto. The unfilled CME gap provides a technical magnet, suggesting a pullback to the $90,000–$95,000 liquidity zone. Chart patterns—a double top with declining volume—reinforce this outlook. Furthermore, on-chain data show retail investors entering at peak prices, heightening the risk of a shakeout when larger holders offload. Similar dynamics occurred in past corrections, such as the 2021 Fed pivot and the 2022 CME gap fill, both preceding notable declines. While long-term forecasts remain bullish, traders should brace for a near-term correction as markets adjust to policy shifts and technical imperatives.