Bitcoin is currently consolidating gains after reaching a lower high, with favorable RSI indicators suggesting potential for further increases. As the Federal Reserve is expected to implement interest rate cuts, traders maintain a bullish outlook on the price of Bitcoin (BTC), which recently tested critical resistance levels around $114,000.
Key Takeaways:
- Bitcoin appears to be establishing a local floor, with key price levels identified for support reclaiming.
- RSI indicators signal upward momentum despite some uncertainty in longer timeframes.
- The anticipated Fed rate cut is influencing the cooling performance of U.S. stocks.
BTC/USD four-hour chart
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
Bitcoin Price Set to Challenge New Highs
Data from Cointelegraph Markets Pro and TradingView indicates Bitcoin is hovering around $114,000. After an impressive weekly close, BTC/USD was able to consolidate during the Monday trading session on Wall Street.
Trader Rekt Capital pointed out vital support levels for Bitcoin to regain bullish momentum, specifically the 21-week EMA at $111,200 and a weekly close at $114,500. He stated, “Bitcoin has successfully Weekly Closed above both the 21-week EMA (green) and $114.5k (black).”
“Both $114.5k & EMA could get retested to confirm a reclaim to support. $BTC could achieve this via a volatile retest of $114.5k, wicking into the EMA below.”
Rekt confirmed that the necessary retest is currently in progress.
Additionally, crypto investor Ted Pillows mentioned, “$BTC bounced back from its $113,500 support zone. As long as Bitcoin holds this, we are going higher. If BTC loses this level, expect a correction towards the $110,000 level.”
Stock Futures Pause Ahead of Fed Meeting
As the week progresses towards a pivotal macroeconomic event—the Federal Reserve’s interest rate announcement—U.S. stock futures are showing some vulnerability. Stocks usually feel pressure leading into Fed meetings.
Pillows observed that Bitcoin often finds local lows on Tuesdays, suggesting that the support retest may continue. Evidence of economic growth supports the earnings outlook, while relaxed financial conditions could amplify growth. In its latest newsletter, Moses Asset Company writes, “The prospect of the Fed cutting interest rates against a robust economic backdrop is additional fuel for the stock market rally.”
S&P 500 futures one-hour chart
S&P 500 futures one-hour chart. Source: Cointelegraph/TradingView
This article does not offer investment advice or recommendations. All investment and trading involve risk, and readers are advised to perform their due research before making any decisions.
