Bitcoin has a new key resistance zone to flip back to support as US Fed rate-cut reactions continue to play out in crypto bulls’ favor
Market Update
Key points:
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Bitcoin bulls are busy flipping key levels back to support; can they crack $118,000 next?
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New all-time highs are on the horizon if the Fed reaction uptrend continues.
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Exchange traders are already bringing in large lines of liquidity on either side of price.
Bitcoin () sought to flip $117,000 to support on Thursday as the Federal Reserve interest-rate cut boosted crypto markets.
Watch these Bitcoin price levels next, say traders
Data from and showed BTC/USD gaining up to 1.3% after the daily close.
Volatility hit as the US Federal Reserve announced its , coming in at 0.25% to match market expectations.
After a brief dip below $115,000, Bitcoin rebounded, liquidating both long and short positions to the tune of over $100 million over 24 hours.
update:
FOMC Price Action nailed 🔨
Boring Monday and Tuesday; Wednesday volatile with the classic retrace of an initial false move.
$105M liquidated in 30mins during FOMC, that’s what it’s important to be aware of this.
Absolutely love this market. Probably $120k next.
— CrypNuevo 🔨 (@CrypNuevo)
Among traders, hopes were high that bulls would cement support and continue on to challenge all-time highs.
“The more important part; will $BTC break through this crucial resistance zone?” crypto trader, analyst and entrepreneur Michaël van de Poppe in a post on X.
An accompanying chart showed the bulls’ next battle at $118,000.
“All I’m sure about is that, once Bitcoin stabilizes, we’ll start to see big breakouts on Altcoins occur,” he added.
Popular trader Daan Crypto Trades on the significance of the $118,000 mark. During by Fed Chair Jerome Powell at the Jackson Hole symposium in August, that level formed a local top as BTC price action strengthened.
“$BTC The $118K level is important as it is the high volume node within this range. Meaning most volume traded at this price level,” he noted on X.
The post concluded that BTC/USD would “quickly visit” all-time highs should $118,000 flip to support.
Liquidity builds with BTC price wedged
A look at exchange order-book data showed thickening liquidity on either side of the spot price on Thursday.
Related:
After the initial Fed shake-out, traders returned to put up “guardrails,” keeping price pinned within the corridor between them.
Data from thus put $116,500 and $119,000 as the key levels to watch for on the day.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
