Key takeaways
- BTC is down by less than 1% over the past 24 hours and is trading around $117,000.
- After recent bullish momentum, the coin could target the psychological $120,000 level next.
Fed rate cut pushes BTC above $117k as bullish trend resumes
The cryptocurrency market enjoyed a strong week, with Bitcoin rebounding from Monday’s low near $114,000 to trade above $117,000. The upturn was driven largely by macroeconomic developments, notably the Federal Reserve’s rate cut announced on Wednesday.
The rate cut provided conditions for Bitcoin to climb to the $117,000 area, and bullish traders are now eyeing a near-term move toward $120,000. Market observers expect the easing to channel more liquidity into crypto markets.
In an email to CoinJournal, Sergei Gorev, Chief Risk Officer at YouHodler, described the Fed’s decision as a meaningful market influence.
“This is a positive development for both financial and crypto markets. Cheaper money pushes asset prices higher. As long as liquidity remains plentiful, the crypto market will feel relatively secure. We should soon see new all-time price levels for BTC, which will also support other tokens. Additionally, approval of new altcoin ETFs will further increase inflows to some cryptocurrencies.”
Bitcoin bulls target $120,000
The BTC/USD 4-hour chart is showing bullish momentum after Bitcoin’s price climbed above its 50-period exponential moving average (EMA) on the 4-hour timeframe. The market found support around $116,000 earlier in the week before breaking past $117,000 on Wednesday.
Bitcoin has consolidated near $117,000 over the past 24 hours but appears positioned to move higher in the short term. The RSI reading at 57 indicates bulls retain control, while the MACD on the same chart has shown a bullish crossover since the 6th.
If bullish momentum continues, BTC could extend its current rally toward the psychological $120,000 mark. A sustained upward run could propel the price to the $125,000 level and potentially establish a new all-time high.
However, a market correction that closes below the $116,000 support could trigger selling pressure and push BTC down toward the next major support and trendline zone around $113,924.