Highlights:
Bitcoin struggles to recover from its drop to $112,000 as traders anticipate another decline.
The Nasdaq’s performance is under scrutiny as overheated RSI conditions raise concerns about a potential ripple effect on crypto.
A senior official from the Federal Reserve suggests the possibility of quicker interest-rate cuts.
On Wednesday, Bitcoin (BTC) attempted to establish $113,000 as support, while traders prepared for potential price weakness into Q4.
New targets for BTC price bottom include $108,000
Data from Cointelegraph Markets Pro and TradingView indicates that BTC/USD is hovering around its daily open.
The pair experienced only a slight rebound after hitting its lowest levels in nearly two weeks, with $111,600 currently acting as support.
Market participants are focusing on potential bounce levels in case of another dip.
“I’m keen to see if $BTC will maintain these critical support levels. If successful, $115K upwards would emerge as the next resistance level,” crypto trader, analyst, and entrepreneur Michaël van de Poppe noted on X.
“If not? Likely another drop to $106-108K –> maximum buy zone.”
Trader BitBull is also cautious, with a particular focus on the 100-day exponential moving average (EMA).
“$BTC rebounded from its daily EMA-100 level. Further declines are still possible,” he informed his followers on X.
“Previously, losing this level led to capitulation. With Q4 approaching, whales might push BTC below this level to maximize pain.”
Crypto investor and entrepreneur Ted Pillows observed the connection between Bitcoin and the Nasdaq 100 index through the relative strength index (RSI).
“$NASDAQ daily RSI has reached 78, its highest since July 2024,” he commented.
“Previously, when the Nasdaq daily RSI was this elevated, a 17% drop occurred within 2-3 weeks. Given the strong correlation with crypto, a drop in $BTC and altcoins is also likely.”
A 17% downturn from current prices would place BTC/USD around $94,000.
Bowman anticipates “faster pace” on Fed rate cuts
Recent indications of a potential interest-rate cut from the US Federal Reserve did not significantly uplift market sentiment.
Related: Year’s biggest long liquidation: 5 vital points on Bitcoin this week
These hints emerged during a speech by Vice Chair for Supervision Michelle Bowman, where she expressed concerns that the Fed might be “falling behind” on rate cuts.
“According to my assessment, recent data, including revisions on payroll employment benchmarks, indicates we might be at a critical risk of falling behind in responding to worsening labor market conditions,” she said at the 2025 Kentucky Bankers Association Annual Convention in Asheville, North Carolina.
“If these conditions persist, I fear we will need to adjust policy more rapidly and significantly going forward.”
Previously, Cointelegraph covered insights from former BitMEX CEO Arthur Hayes, who contended that US President Donald Trump would utilize senior Fed officials to sway policy.
Throughout 2025, Trump has consistently called for rate cuts, even threatening to dismiss Fed Chair Jerome Powell over the matter. Powell was later scheduled to address the Greater Providence Chamber of Commerce’s 2025 Economic Outlook Luncheon in Warwick, Rhode Island, on Tuesday.
This article does not provide investment advice or recommendations. All investment and trading decisions carry risks, and readers should perform their own due diligence.
