Bitcoin Nears $120K as Fed Rate Cut Bets Grow.
Bitcoin hovers around $120,000 as traders increase wagers on a potential Federal Reserve rate cut next month.
FUNDAMENTAL OVERVIEW:
Cryptocurrency prices advanced on Wednesday, buoyed by strong market sentiment after the latest US Consumer Price Index (CPI) report showed inflation rose, but at a slower pace than expected. Bitcoin (BTC) rebounded sharply from Tuesday’s low of $118,928, returning to trade just above $120,000.
Earlier in the week, BTC encountered strong resistance at the key psychological barrier of $120,000 on Monday, leading to a slight pullback. It made another attempt to close above this level on Tuesday but fell short. As of Wednesday’s session, BTC is trading near $119,500.
A decisive daily close above $120,000 could pave the way for a rally toward its all-time high of $123,218. Beyond that, bulls may set their sights on the $125,000 psychological mark, entering price discovery territory. Conversely, if BTC fails to hold the $120,000 level and corrects lower, the next notable support lies near $116,000 on the daily chart.
BTC/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
BTC/USD is trading within an up channel.
BTC/USD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 122685
Immediate support level: 117743
HOW TO TRADE BTC/USD
BTC/USD, after posting earlier gains, paused to consolidate before breaking to the upside. It has since retested its support zone and rebounded higher. The pair has now breached its immediate resistance, and if it holds above this level, further upside momentum could follow.