BTC tests key resistance as traders eye FOMC rate cut
Bitcoin surged past $117,000, testing a critical resistance zone just days before the U.S. Federal Reserve announces its latest interest rate decision. The move has fueled optimism among traders that the largest cryptocurrency could attempt another breakout if bullish momentum continues.
The chart shows BTC breaking out of a descending channel, reclaiming higher ground after finding strong support near the $109,000–$110,000 region. The latest rally brought prices directly into a major supply zone around $117,000–$118,000, where selling pressure has historically capped upside moves.
“This breakout is significant because it invalidates the recent downtrend structure,” said BITX analyst, adding that the focus now is whether Bitcoin can establish support above $117,000. “If bulls manage to hold this level, the next logical target sits around $122,000–$124,000.”
The green zone highlighted on the chart reflects buying demand between $112,000 and $114,000, which served as the launchpad for the current rally. Traders also point to the $109,000 support area as the line in the sand for maintaining bullish momentum.
On the upside, the red resistance band near $118,000 remains the immediate hurdle. Beyond that, a break toward the $123,000–$124,000 zone could confirm a medium-term bullish continuation.
Market participants are also watching macroeconomic developments closely. With the Fed expected to cut interest rates from 4.50% to 4.25%, risk assets like Bitcoin could benefit from renewed liquidity.
“The timing of this breakout, just before the FOMC meeting, is no coincidence,” said BITX market strategist. “Traders are positioning for a dovish outcome that could trigger further upside in crypto markets.”
While Bitcoin has shown strong momentum, analysts warn that failure to hold above $117,000 could lead to a retest of the lower demand zone. Still, the overall structure suggests improving bullish sentiment, especially as liquidity expectations shift in favor of risk assets.
The coming days will be decisive: if Bitcoin consolidates above resistance, a push toward $120,000 and beyond could unfold before the end of September.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.