Bitcoin Price USD Faces Mild Rejection, Is the Fed Rate Cut Hype Over?

Bitcoin price USD is in the spotlight as the leading cryptocurrency market, but it has faced mild rejection, with prices hovering around $116,400. The recent BTC price downtrend follows the announcement of a 0.25% interest rate cut by the U.S Federal Reserve.

While some market players think the Fed rate cut hype may be over, analysts have raised bullish projections for BTC.

The Bitcoin Price USD Resistance

Technical analyst and investor Titan of Crypto noted that Bitcoin is facing resistance around $116,466. This means that as the BTC price approaches this level, sellers step in, preventing further upward movement.

The analyst added that the leading coin is still stuck under the bearish fair value gap on the daily price chart. For context, a bearish fair value gap follows a sharp price drop, leaving a range for little trading.

This gap often acts as resistance when the price tries to move back up through it, as sellers may defend this zone.

According to Titan of Crypto, a close above the bearish fair value gap could open the way for more BTC price upticks. This indicates that buyers have overcome the selling pressure in the $116,466 resistance zone.

As of this writing, the Bitcoin price USD was down 0.58% over the previous day to $116,459. The daily trading volume also decreased by 35.2% to $43.2 billion.

Notably, the bearish BTC price on the daily charts follows the 0.25% interest rate cut announcement at the September FOMC meeting. This is the first time the Fed is cutting rates this year, driven by persistent inflation pressures.

Markets anticipated this cut, with traders pricing in a 100% chance of a rate reduction. Many expected the rate cut to increase liquidity, which is generally bullish for BTC and cryptocurrencies in general.

However, with BTC currently down, the hype around the rate cut’s immediate impact on the crypto market appears to have subsided.

Coinbase BTC Reserve Shift Perspective

Nevertheless, optimism remains high for a future BTC rally, especially considering Coinbase’s rising BTC reserve.

As revealed by the onchain analytics platform CryptoQuant, the Coinbase exchange currently holds $112 billion in reserves of Bitcoin, Ethereum (ETH), and stablecoins.

The surging Coinbase crypto reserve marks a four-year high as it is the highest level seen since November 2021.

It, therefore, suggests fresh capital inflows, driven by growing confidence from both institutional and retail investors.

Historically, rising exchange reserves often precede or coincide with bullish price momentum.

When investors move assets to exchanges, it typically increases liquidity, facilitating larger trades and potentially driving price increases as demand grows.

Therefore, reaching this four-year high could indicate sustained market strength and prepare BTC for the next major move.

PlanB Targets BTC at $250K By 2026

Market analyst PlanB also made a bold Bitcoin price USD forecast. The analyst predicted that BTC could hit $250,000 as early as next year.

PlanB highlighted his earlier BTC price prediction, which eventually turned out as reality.

On January 12, 2023, PlanB noted that BTC bottomed around $15,500 following the FTX November 2022 collapse. Since then, Bitcoin has not fallen below that level and recovered to new highs in 2023.

PlanB added that Bitcoin price would continue the rally into 2024. He predicted that BTC would rally to $32,000 following the April 2024 halving.

This prediction also came true: Bitcoin traded around $70,000 following the halving event. The analyst went on to forecast that BTC would rally towards $100,000 in 2025, which also proved correct.

Note that at the time of his forecast in January 2023, the BTC price hovered around $18,000. As a result, many considered PlanB’s predictions bold.

Considering his earlier predictions have held, PlanB believes Bitcoin will exceed $250,000 in 2026. This implies more than 100% growth from its current level.