Bitcoin’s Weak Bounce Hinges on US Stocks and Fed Rate Cuts
Bitcoin failed to sustain its bounce after testing the $112,000 resistance level, leaving traders cautious. The BTC price remains range-bound between $109,000 support and $112,000 resistance. Market participants are eyeing the US stock market’s ongoing rally and anticipated Federal Reserve rate cuts as potential catalysts. Technical indicators on daily charts show the Stochastic RSI near oversold levels and the RSI holding at around 40, suggesting a possible short-term uplift. On the weekly timeframe, Bitcoin is balanced on key structural support, which has historically preceded strong advances. Overall, Bitcoin remains in consolidation until it decisively breaks above $112,000 or below $109,000, with US market sentiment and Fed policy likely to dictate the next major move.
Neutral
This article highlights Bitcoin’s current range-bound trading between $109,000 support and $112,000 resistance, with neither side showing decisive momentum. Historical patterns suggest that a break of these levels often leads to significant moves, but until then, traders remain sidelined. The focus on US stock market highs and anticipated Fed rate cuts introduces potential bullish drivers, yet past Fed timing errors and unclear market signals balance the outlook. Similar periods of consolidation in 2024 preceded both strong rallies and sharp pullbacks, underscoring the neutral stance until clear technical confirmation emerges.