Bitcoin entered the downtrend after the new ATH in mid-August, falling below $110,000.
The Fed is expected to cut interest rates in September due to the rise, but some analysts have predicted that Bitcoin will not experience the expected rise even if the Fed cuts interest rates.
Speaking to the block, Chronos Research Chief Investment Officer (CIO) Vincent Liu said the Fed’s interest rate cuts may not be enough to push BTC to $120,000.
Liu added that interest rate cuts could be a sign of a slowdown, and could curb demand for dangerous assets by weakening inflation concerns and investor confidence.
At this point, analysts predicted that the $120,000 level would remain a strong point of resistance for Bitcoin, without a significant increase in ETF inflows or a significant increase in liquidity.
“The Federal Reserve’s potential fee reduction at this month’s FOMC meeting could have a limited impact on Bitcoin prices.
Bitcoin may not be able to exceed $120,000 unless the inflow into spot ETFs increases or liquidity increases.
BTC Markets Crypto analyst Rachel Lucas also said weak employment data is positive for risk assets, but the market can drive the Fed’s Dovish Stance, where the price of interest rate reductions is large.
Lucas added that the combination of profit gains from institutional investors and stagnant inflows into spot Bitcoin ETFs limits BTC’s bullish momentum and will be integrated in a narrow range.
What are the important resistance levels in Bitcoin?
Lucas recently said that Bitcoin’s current main support is $110,000.
“As long as Bitcoin maintains its critical $110,000 level, it remains a market maker.
BTC’s initial resistance is $113,400, followed by other resistance levels at $115,400 and $117,100.
These breaks overcoming resistance indicate that the market is ready to absorb recent sales pressures and retest highs. ”
*This is not investment advice.
