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FOMC rate cuts loom as Bitcoin holds above $109,500 EMA

FOMC rate cuts loom as Bitcoin holds above $109,500 EMA

GrafaGrafa2025/10/01 08:00
By:Jon Cuthbert

Bitcoin (CRYPTO:BTC) dropped to $111,800 last Sunday night before bouncing back to retest resistance at $113,800 and the 21-day EMA at $114,000.

The rejection at that level pushed the price down to $111,300, which held as support and produced another bounce.

Bulls were again denied at $113,800, with bitcoin sliding below $109,500 on Thursday before closing the week at $112,225.

Closing above the 21-week EMA at $109,500 keeps this level as a key floor for bulls looking to establish a higher weekly low.

If $109,500 fails, support sits at $105,000 and $102,000, with $96,000 as major long-term support.

On the upside, a close above $115,500 could re-ignite the uptrend, with $118,000 and $121,000 the next hurdles.

Traders expect a retest of $109,500 early in the week, with potential to bounce back toward $113,800.

A move above $115,500 would require strong buying pressure, while failure at $113,800 risks renewed downside.

Bias remains bearish on the weekly chart, with $113,800 likely to act as resistance in the short term.

Losing $109,500 could trigger further drops toward the $105,000–$102,000 support zone.

Market sentiment ended bearish last week with a red candle, showing bears still in control.

Bulls must defend the 21-week EMA and post a green candle this week to confirm a higher low.

With September’s rate cut already priced in, attention shifts to October and December FOMC meetings.

Investors are closely watching U.S. financial data for signs of more cuts to support capital flows.

Any obstacles to further rate cuts could pressure markets and drive bitcoin to fresh lows.

At the time of reporting, Bitcoin price was $114,326.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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