Highlights:
Bitcoin struggles to rebound from its drop to $112,000 as traders anticipate the possibility of another decline.
Nasdaq’s performance is under scrutiny as inflated RSI levels raise concerns about potential impacts on cryptocurrencies.
A high-ranking Federal Reserve official discusses the possibility of accelerating interest-rate cuts.
On Wednesday, Bitcoin (BTC) attempted to establish $113,000 as a support level while traders braced for price volatility heading into Q4.
New BTC price floor targets set at $108,000
Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD is hovering just above its daily opening price.
The pair experienced a slight recovery from its recent lows, with $111,600 currently acting as support.
As market participants analyzed the latest price movements, attention turned to potential bounce levels in case of a new dip.
“I’m curious to see if $BTC can sustain these critical support levels. If it holds, the next resistance target would likely be $115K,” said cryptocurrency trader, analyst, and entrepreneur Michaël van de Poppe on X.
If it doesn’t hold? Expect another drop to $106-108K –> ideal buy zone.
Popular trader BitBull has also been monitoring a potential downturn, with particular focus on the 100-day exponential moving average (EMA).
“$BTC rebounded from the EMA-100 level today. However, further declines are possible,” he noted to his followers on X.
“The last time BTC fell below this level, it led to significant capitulation. With Q4 approaching, I suspect whales might try to push BTC below this threshold to maximize pain.”
Crypto investor and entrepreneur Ted Pillows has been focusing on the interplay between Bitcoin and the Nasdaq 100 index, as analyzed through the relative strength index (RSI).
“The $NASDAQ daily RSI has hit 78, its highest mark since July 2024,” he commented.
“Last time the Nasdaq daily RSI peaked like this, a 17% decline followed within 2-3 weeks. Given the strong correlation between crypto and Nasdaq, a similar downturn is likely for $BTC and altcoins.”
A 17% retracement from current levels would bring BTC/USD down to approximately $94,000.
Bowman suggests “accelerated pace” for Fed rate cuts
Recent indications of potential interest-rate cuts from the US Federal Reserve have not lifted market sentiments.
Related: Largest long liquidation of the year: Key Bitcoin insights this week
This information was shared during a speech by Vice Chair for Supervision Michelle Bowman, cautioning that the Fed might be “behind the curve” concerning rate cuts.
“I believe the latest data, including payroll employment benchmark revisions, indicate we may already be lagging in addressing the worsening labor market conditions,” she addressed the attendees at the 2025 Kentucky Bankers Association Annual Convention in Asheville, North Carolina.
“If these conditions persist, I fear we may need to adjust our policy more rapidly and significantly moving forward.”
Earlier, Cointelegraph discussed analysis from former BitMEX CEO Arthur Hayes, who asserted that US President Donald Trump would seek to influence policy through senior Fed officials.
Trump has publicly advocated for rate cuts throughout 2025, even hinting at the possibility of removing Fed Chair Jerome Powell over this issue. Powell was scheduled to speak at the Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon in Warwick, Rhode Island, later that Tuesday.
This article does not offer investment advice or recommendations. All investments and trading activities carry risk, and readers should conduct their own research before making decisions.
