Key points:
Bitcoin faces challenges in regaining its previous highs following the recent downturn.
The new targets for BTC price during this “volatile retest” are set at $111,000 and a $114,500 weekly close.
Anticipation of Fed rate cuts has led the S&P 500 to reach new record levels.
Bitcoin (BTC) remained under pressure at the start of Wall Street on Wednesday, coinciding with record highs in US stocks.
Bitcoin undergoes “volatile retest” as FOMC approaches
Data from Cointelegraph Markets Pro and TradingView indicated BTC price movement hovering around $113,000.
BTC/USD is recovering from losses incurred during Tuesday’s US session, having failed to rebound to $116,000.
This price point remains crucial for short-term targets, with others set at $114,500 above and $111,000 below.
“Bitcoin is currently going through an anticipated volatile retest,” trader and analyst Rekt Capital noted on X.
He pointed out Bitcoin’s 21-week exponential moving average (EMA) is near the $111,000 level.
“Bitcoin just needs to Weekly Close above $114.5k to ensure a successful retest,” he mentioned alongside the weekly chart.
Trader Daan Crypto Trades also highlighted the 200-period EMA on four-hour charts, presently at $113,100.
“BTC remains within the range. $116K has been rejected twice, and the price has reverted closer to its large volume node around $111K,” he informed his followers on X.
Daan Crypto Trades pointed out the range boundaries at $116,000 and $107,000, respectively.
Rate cut perceived as “non-event” for crypto markets
While crypto markets moved sideways, the S&P 500 surged, achieving a new all-time high of 6,914.
Related: BTC price aims for record monthly close: 5 key points about Bitcoin this week
This movement occurred as risk-asset traders readied for the US Federal Reserve’s interest rate decision.
As previously reported by Cointelegraph, markets were largely expecting a 0.25% rate cut — a typical boost for crypto, stocks, and other assets.
Trading entity QCP Capital stated that the announcement from Fed Chair Jerome Powell would likely have minimal impact on the markets.
“Tonight’s FOMC meeting is anticipated to be a non-event. The Fed is set to implement a 25bp cut, in line with its September dot plot, and Powell is expected to refrain from providing new forward guidance,” it wrote in its latest “Asia Color” market update.
“The lack of official data since the U.S. government shutdown leaves the Fed effectively navigating without a clear direction. Any adjustments in policy would be premature without inflation or employment reports.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
