Bitcoin Struggles to Regain Momentum as S&P 500 Hits New Highs
Bitcoin (BTC) is facing challenges in its attempt to reclaim its recent highs following a significant sell-off. As of the latest trading sessions, BTC price targets are focused on a “volatile retest” around $111,000, with a potential weekly close of $114,500. Meanwhile, expectations of an interest rate cut by the Federal Reserve have led to new record highs for the S&P 500, with the index reaching an all-time high of 6,914.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Bitcoin Undergoes “Volatile Retest” in FOMC
Data from Cointelegraph Markets Pro and TradingView indicates that the BTC price is holding steady at $113,000. The cryptocurrency suffered losses from a sell-off that began during Tuesday’s US session, resulting in a decline from a rally to $116,000. This level remains a key short-term price target, with others at $114,500 upside and $111,000 downside.
According to trader and analyst Rekt Capital, “Bitcoin is currently in the process of an expected volatile retest.” Rekt Capital highlights that Bitcoin’s 21-week exponential moving average (EMA) is near the $111,000 level, emphasizing the importance of achieving a weekly close above $114.5K to confirm a successful retest.
BTC/USD 1-week chart. Source: Rekt Capital/X
Trader Daan Crypto Trades notes that the 200-period EMA on the four-hour time frame is currently at $113,100, and “BTC is still in this range. $116,000 has now been rejected twice and the price is back down closer to its major volume nodes around $111,000.” Daan Crypto Trades also draws attention to the range boundaries at $116,000 and $107,000 respectively.
BTC/USDT four-hour perpetual contract chart. Source: Daan Crypto Trades/X
Interest Rate Cut Considered a “Non-Event” for Crypto Markets
While crypto markets traded sideways, the S&P 500 opened with a bang, hitting a new all-time high. The move came as risk asset traders prepared for the Federal Reserve’s interest rate decision, with markets broadly expecting a 0.25% rate cut – a traditional tailwind for crypto, stocks, and more.
One-hour chart of the S&P 500. Source: Cointelegraph/TradingView
Trading resource QCP Capital suggests that Fed Chair Jerome Powell’s announcement alone would have little impact, stating that “tonight’s FOMC is widely expected to be a non-event.” The firm notes that the lack of official data since the government shutdown in the US means that the Fed is effectively “flying blind,” making any policy reorientation premature.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making their decision.
For more information, visit https://cointelegraph.com/news/bitcoin-slips-at-113k-while-sp-500-hits-new-all-time-high-fed-rate
