A top expert highlighted $115,440 as a strong support base for a price rally to $137,300.
Bitcoin climbed to a monthly high near $118,000 as optimism built around the Federal Reserve’s latest rate cut by 25 basis points. Notably, this marks a one-month peak for BTC price, which has sparked market optimism.
At the time of writing, BTC price was trading at $117,415, which represents a daily uptick of 1%.
During Jerome Powell’s speech, he noted that job growth had slowed, unemployment was slightly up, and inflation had risen.
The central bank also noted that risks to employment had increased, pointing to a more dovish stance moving forward.
Additionally, on-chain data shows an increase in new long positions, which could be a major driving force for BTC to reach $120,000.
According to an analysis by Michael van de Poppe on X, Bitcoin price is testing a crucial resistance at $119,000. He said that this level will determine the next phase of movement to the next high.
Meanwhile, if the market breaks through, the next target sits near $123,700. This level also lines up with a previous liquidity grab.
However, on the downside, support rests at $114,700 and then around $111,900, where buyers may look for entry.
Overall, momentum is positive, but traders should watch for confirmation at resistance before expecting another leg higher. A clean retest could open the door to new highs.
In addition, crypto analyst Ali Martinez has identified $115,440 as a key support level for Bitcoin price, based on Pricing Bands.
According to him, if BTC price holds above this level, it could pave the way for a rise toward $137,300. However, if the price falls below it, the cryptocurrency may face a decline toward $93,600.
Amid the current rally in Bitcoin price, altcoins also staged strong gains after Jerome Powell announced a 25 basis point rate cut at the September 17 FOMC meeting.
In other words, the Fed rate cut optimism triggered a broad surge across the crypto market. Moreover, total short liquidations reached $232 million.
Historically, the S&P 500 has rallied an average of 15% in the year after a Fed rate cut. With the close correlation between Bitcoin and the index, analysts are weighing how the next phase of BTC price will look.
According to a tweet by JDK Analysis, Bitcoin price action has been moving sideways, but order flow data reveals more activity beneath the surface.
As per his analysis, most of the recent movement has been driven by new long positions. Cumulative volume delta (CVD) has been moving upward, showing steady buying pressure.
On the other hand, open interest (OI) is also rising steadily, indicating that traders are opening new positions instead of closing the existing ones.
Together, these signals point to bullish positioning. This is despite the BTC price action showing indications of a decisive breakout.
However, the sideways price action highlights a tug-of-war between buyers trying to gain momentum and sellers holding their ground.
Meanwhile, Bitcoin’s daily trading volume jumped 41% to over $67 billion, showing strong bullish sentiment.
Altcoins are performing even better, fueled by hopes of new liquidity from potential rate cuts. This has further fueled sentiment over a continuing rally in the broader crypto market alongside Bitcoin price.
Ripple’s XRP price rose 3%, while BNB Coin (BNB) hit new all-time highs, eyeing a $1,000 breakout amid rumors of CZ returning to Binance.
Meanwhile, the U.S. SEC approved a rule change to adopt generic listing standards for crypto ETFs.
This move could open the door for new crypto ETF approvals tied to SOL, ADA, DOGE, and other tokens. In the last 24 hours, each of these altcoins gained more than 5%.
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