Bitcoin Price Reclaims $80,000 as Fed Rate Hike Odds Fade
Bitcoin price rose 4.5% on Sept. 3 to an intraday high of $81,370, trading near $80,840 at publication. The rally followed Federal Reserve Governor Christopher Waller’s comments that he could support holding interest rates steady at the Sept. 15–16 meeting if August inflation data shows further cooling. His remarks reduced expectations for a September rate hike, while lower Treasury yields and a weaker US dollar supported risk assets.
Bitcoin price is now testing the key $80,000–$81,400 resistance zone, which has capped previous rallies. A daily close above $81,400 could strengthen the falling-wedge breakout and open a path toward $83,450 and potentially $85,000. However, the daily RSI reached 72.31, indicating overbought conditions and a higher risk of short-term profit-taking.
On the four-hour chart, Bitcoin traded above the upper Bollinger Band near $80,422, signalling strong momentum but increased volatility. Traders are watching $80,400 and $80,000 as immediate support. A break below could expose $78,175 and the $76,000–$76,500 area.
CoinGlass data showed short liquidations between $78,000 and $80,500 helped accelerate the move. The next major liquidation cluster is around $81,300–$81,600. Corporate buying expectations also supported sentiment: Strive said it could acquire more than 20,000 BTC before year-end, while Capital B raised €7.6 million in a private placement that could fund up to 376 BTC purchases.
Bullish
The immediate market impact is bullish because softer Federal Reserve rate expectations, falling Treasury yields and a weaker US dollar generally improve liquidity conditions for Bitcoin. The 4.5% advance, falling-wedge breakout and short liquidations reinforce short-term upside momentum.
The next key test is the $81,300–$81,600 area. A sustained break above $81,400 could trigger additional short covering and attract momentum traders, with $83,450 and $85,000 as potential targets. Corporate accumulation expectations from Strive and Capital B add a supportive medium-term narrative.
However, the bullish signal is not risk-free. Bitcoin is above the upper four-hour Bollinger Band and its daily RSI is above 70. Similar breakouts during overbought conditions can lead to sharp pullbacks when buying pressure fades. A failure to hold $80,000 would weaken the setup and could send Bitcoin toward $78,175 or $76,000–$76,500. The August consumer price index report remains a major catalyst because renewed inflation could revive rate-hike expectations. Overall, the news favours bullish short-term trading, but traders should monitor resistance, liquidity clusters and US inflation data.