Fed’s 25bp Rate Cut Sends Bitcoin Above $117K, Eyes $120K
Bitcoin climbed above $117,000 after the Fed cut interest rates by 25bps to 4.00–4.25%. The move weakened the dollar and lifted risk assets, driving spot volume up nearly 50% to $60.9 billion and futures volume 66% to $119.8 billion. Open interest rose to $85.7 billion, signaling fresh leveraged bets. On the charts, Bitcoin trades near the upper Bollinger Band, with resistance at $118,700 and immediate support at the 23.6% Fibonacci level of $114,992. A bullish MACD crossover and RSI near overbought point to upside potential. A break above $118,700 (or the recent swing high at $117,377) could target $120,126 (127.2% Fib) or the mid-August peak of $124,128. Conversely, a drop below $114,992 may see support at $113,517 or the 100-day SMA near $111,600. Traders should watch these key levels amid the dovish Fed backdrop.
Bullish
The Fed’s 25 bp rate cut and dovish stance reduce real yields and boost risk appetite, making Bitcoin more attractive relative to cash and bonds. The surge in spot and futures volume, along with rising open interest, indicates renewed leveraged positions. Technical indicators—including a bullish MACD crossover, RSI near overbought levels, and price trading at the upper Bollinger Band—support further upside. In the short term, a break above key resistances could accelerate momentum toward $120K–$124K. Over the long term, sustained low rates may continue to channel capital into risk assets like Bitcoin, underpinning its price.