Bitcoin entered a downtrend after its new ATH in mid-August, falling below $110,000. While the Fed is expected to cut interest rates in September for the rise, some analysts predict that Bitcoin will not experience the expected rise even if the Fed cuts interest rates. Speaking to The Block, Chronos Research Chief Investment Officer (CIO) Vincent Liu said that the Fed's interest rate cut may not be enough to push BTC to $120,000. Liu noted that the interest rate cut could be a sign of an economic slowdown, adding that inflation concerns and weakening investor confidence could suppress demand for risky assets. At this point, the analyst predicted that without a significant increase in ETF inflows or a noticeable increase in liquidity, the $120,000 level will remain a strong resistance point for Bitcoin. “A potential rate cut by the Fed at this month's FOMC meeting may have a limited impact on Bitcoin's price. Unless inflows into spot ETFs increase or liquidity improves, Bitcoin may not be able to break above $120,000 easily. BTC Markets crypto analyst Rachel Lucas also noted that weak employment data could encourage the Fed's dovish stance, which is positive for risk assets but the market has largely priced in the interest rate cut. Lucas further added that a combination of profit-taking by institutional investors and stagnant inflows into spot Bitcoin ETFs is limiting BTC bullish momentum, causing it to consolidate in a narrow range. What Are the Critical Resistance Levels for Bitcoin? Lucas recently said that the current key support for Bitcoin is at $110,000. “As long as Bitcoin maintains the critical $110,000 level, it remains a market maker. The first resistance for BTC is at $113,400, followed by other resistance levels at $115,400 and $117,100. A break above these resistances would indicate that the market has absorbed the recent selling pressure and is ready to retest the highs.” *This is not investment advice. Continue Reading: Will the Fed's Decision Stop the Decline in Bitcoin? Will There Be a Rise? Analysts Answer, Reveal Critical Levels for BTC!
