Key Points
- BTC has fallen less than 1% over the past 24 hours and is trading around $117.
- After recent bullish momentum, the coin may next target the psychological $120 level.
Fed rate cut renews BTC bullish trend as price rises above $117
Cryptocurrency markets enjoyed a solid week, with Bitcoin rebounding from a Monday low of $114 and trading above $117. The strong performance was driven by macroeconomic factors, chiefly the Federal Reserve’s rate cut announced Wednesday.
The rate reduction helped lift Bitcoin to the $117 area, and bullish traders are now eyeing further gains toward roughly $120 in the short term. Analysts say the Fed’s move has injected liquidity into crypto markets, supporting higher prices.
Sergey Gorev, Head of Risk and Compliance at YouHodler, told CoinJournal by email that the Fed cut is a highly significant development for markets.
“This is a positive development for both financial and cryptocurrency markets. Cheaper money tends to push asset prices higher. As long as liquidity remains ample, the crypto market will feel confident. We expect new historical highs for BTC soon, and other coins should find support as well. Additionally, approvals of new altcoin ETFs should bring increased inflows into some cryptocurrencies in the near term.”
Bitcoin bulls set sights on $120k milestone
The BTC/USD four-hour chart shows sustained bullish momentum after Bitcoin surged above the 50-period exponential moving average (EMA) on September 10. The coin found support near $116 earlier this week and climbed back above $117 on Wednesday.
BTC has consolidated around $117 over the past 24 hours but retains upside potential in the near term. A relative strength index (RSI) reading of 57 indicates bulls still control the market, while the moving average convergence divergence (MACD) on the same chart has shown a bullish crossover since September 6.
If the bullish trend continues, BTC’s current run could expand toward the psychological $120,000 level. A prolonged bull market could push the price toward $125,000 and potentially challenge all-time highs along the way.
Conversely, if the market corrects and Bitcoin closes below the $116 support level, selling pressure could intensify and drive BTC down toward the next major support and TLQ zone around $113,924.