Bitfinex claims Bitcoin has established a new resistance level near $116,000.
Bitfinex analysts claim that Bitcoin has established new resistance near the $116,000 mark, which is unlikely to change until the cryptocurrency gains new momentum.
However, two potential catalysts on the horizon could push Bitcoin's price higher.
“BTC is currently trading near the upper end of the range around $116,000, which remains resistance until the price is finally broken out,” Bitfinex said in a report published on Tuesday.
The report also said that since Bitcoin hit an all-time high of $124,100 on August 14, its momentum has faded, with its price falling below the base value of recent buyers who entered the market during the peak, in the range of $108,000 to $116,000.
According to CoinMarketCap, Bitcoin has gained 4.34% over the past seven days and is trading at $116,370 at press time. Source: CoinMarketCap.
The US Federal Reserve is scheduled to announce its interest rate decision on Wednesday. According to the CME FedWatch tool, market participants estimate the probability of a 25 basis point rate cut at 96.1%.
Analysts are divided on the Fed's response.
Market participants are divided over how Bitcoin's price will react if the Fed announces a rate cut. Fundstrat co-founder Tom Lee called the Fed rate cut a potential catalyst for Bitcoin and Ethereum, allowing them to make “a giant leap in the next three months.”
However, other analysts are more skeptical about the developments. Crypto analyst Ted expressed confidence in a Fed rate cut, but in a post on X on Tuesday, he noted that Bitcoin could fall to $104,000 before reversing, or to $92,000 before rebounding to a new all-time high.
A Fed rate cut is usually a positive for risky assets, as traditional investments such as bonds and time deposits become less attractive to investors.
However, analysts often warn that prices could still decline following such optimistic developments. Overall, sentiment among crypto market participants was divided: the Cryptocurrency Fear and Greed Index on Wednesday showed a “neutral” reading of 53.
The fourth quarter could be a catalyst for cryptocurrency growth.
Another catalyst is expected on October 1st, which marks the start of Q4 2025. This is historically the best-performing quarter for Bitcoin, with an average return of 85.42% since 2013, according to CoinGlass.
Meanwhile, Bitfinex analysts said long-term holders' confidence remains strong, as the recent sell-off that saw Bitcoin's price fall to $107,400 on September 1 was largely driven by investors who had been buying the cryptocurrency over the past six months.
“This dynamic suggests that investors who accumulated funds during the correction in February-May used the recent rebound as an opportunity for a profitable exit, creating significant preconditions for further upward momentum,” the analysts note.
Source: cryptonews.net
