Concerns Greet Bitcoin Traders as $102K May Be on the Horizon While Gold Reaches New Heights
Amid warnings of a potential drop for Bitcoin, gold climbs to all-time highs fueled by prospects of interest rate cuts from the Federal Reserve.
Bitcoin traders are on alert as forecasts suggest the cryptocurrency could dive to $102,000, while gold has reached record levels, currently priced over $4,200 an ounce. These developments follow indications from the Federal Reserve regarding possible interest rate cuts, which have sparked increased selling of Bitcoin, with metrics showing resistance above $114,000 remains unbroken.
Key points:
- Bitcoin is facing a precarious position, with support around $102,000 looking increasingly fragile.
- Analysis indicates the ongoing bull market could be jeopardized.
- Gold continues to achieve new record highs, leaving Bitcoin’s price movement significantly lagging behind.
Bitcoin (BTC) experienced selling pressure during the Wall Street opening on Wednesday, further complicating its price metrics which show little sign of recovery.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
BTC price forecasts see $102,000 as pivotal
Data from Cointelegraph Markets Pro and TradingView indicate that BTC/USD is trading around $111,000 at the time of this writing, down nearly 2%.
Earlier in the day, downside liquidity had been reached, and bulls have yet to overcome resistance just under $114,000 according to data from CoinGlass.
BTC liquidation heatmap (screenshot). Source: CoinGlass
Trader Roman cautioned that the $102,000 lows observed on Binance last week might resurface. “Now it’s starting to look like a failed reversal setup,” he wrote in an X post discussing the four-hour chart.
“Again I have fears that we fill that wick all the way down to 102k. Any lower and this setup invalidates but likely already has. Looking like consolidation to fill the wick.”
A decline to $102,000 would represent a nearly 19% decrease from Bitcoin’s recent all-time highs — a scenario that is not unusual during this bull market, which has been ongoing since early 2023.
Crypto analyst Ted Pillows noted on X that “BTC’s long-term structure is still looking good. As long as the $102,000 level holds, Bitcoin will be in a bull run.”
“If BTC closes a monthly candle below the $102,000 support level, I would be concerned.”
Meanwhile, fellow trader Crypto Tony reported that the daily low of $110,500 “should hold” for now.
Gold all-time highs leave Bitcoin behind
Bitcoin has thus missed the opportunity to leverage potential macroeconomic factors now benefiting risk assets.
In a speech on Tuesday, U.S. Federal Reserve Chair Jerome Powell increased expectations of a further interest rate cut at the upcoming October meeting.
This optimism contributed to gold setting a new record high during the day, surpassing $4,200 per ounce.
While gold continues to post fresh highs, Bitcoin briefly touched a new record just before the weekend. With institutional treasuries accumulating positions and ETF inflows remaining robust ($102.7 million into BTC ETFs and $236.2 million into ETH ETFs yesterday), the setup for a renewed rally may already be forming.
BTC/USD vs. XAU/USD one-day chart. Source: Cointelegraph/TradingView
QCP also raised concerns about whether Bitcoin can sustain its status as “digital gold” going forward.
Disclaimer: This article is not intended as investment advice. Every trading decision involves risk, and readers should conduct their own research.
