Fed interest rate cuts boost global markets: S&P 500 and Nasdaq 100 pump, Bitcoin approaches $117,000 key resistance level.

After the Fed announced its first rate cut of 25 basis points this year, U.S. stock index futures rose sharply, signaling a boost in market sentiment. Although there remains uncertainty about the future pace of policy easing, global stock markets generally surged. Against this backdrop, Bitcoin (BTC) has also embarked on a new round of pump, with its price successfully breaking through $116,000 and facing the critical resistance level of $117,000. This article will analyze Bitcoin's recent technical trends and key price levels in conjunction with the macro responses of the TradFi market.

Fed cuts interest rates by 25 basis points: Market sentiment rebooted, global stock markets rise

After the Fed announced its decision on Wednesday, U.S. stock index futures saw a rise, with S&P 500 futures up 0.5% and Nasdaq 100 futures up 0.7%. Despite Fed Chairman Jerome Powell referring to this rate cut as a "risk management rate cut" and indicating that future policies will be decided "on a meeting-by-meeting basis," global markets still exhibited positive sentiment. Stock markets in Japan, China, and South Korea all recorded gains, while global stock indices also climbed to historic highs.

The Fed, by a vote of 11 to 1, lowered the target range for the federal funds rate to 4.0% to 4.25%. Notably, the only dissenting member, Stephen Miran, is a staunch supporter of President Donald Trump, who advocates for a more significant rate cut.

Wall Street strategists say that this rate cut is a temporary breather. Bloomberg MLIV strategist Mark Cranfield predicts that Fed officials may make more "dovish" statements next week, and the call for a 50 basis point rate cut in Milan may be embraced by more people to accelerate the rate cut process next year.

Bitcoin Price Analysis: Break Through the Key Resistance at $117,000?

Under the positive market sentiment triggered by the Fed's decision, the price of Bitcoin has entered a new upward wave. BTC successfully broke through the resistance levels of 116,000 dollars and 116,200 dollars, reaching a high of 117,291 dollars before starting to correct downward. Although the price has retraced, bulls remain active around 115,000 dollars and have successfully defended the 61.8% Fibonacci retracement level from the low of 114,157 dollars to the high of 117,291 dollars. Currently, the price of Bitcoin is trading above 116,200 dollars and above the 100-hour simple moving average, while forming a key bullish trend line on the hourly chart, with its support level at 115,500 dollars.

The key resistance level that Bitcoin's price faces is $117,250. If it can decisively break through and close above $117,800, the price may further pump to $118,500, and even challenge the next resistance level at $119,250.

Technical Indicator Signals: Bullish Sentiment Prevails, Beware of Downward Risks

(Source: TradingView)

The technical indicators for Bitcoin show bullish momentum. The MACD on the hourly chart is entering the bullish zone, while the Relative Strength Index (RSI) is also above the 50 level, indicating that the buying power is dominant.

However, if Bitcoin fails to successfully break through the resistance zone of $117,250, it may trigger a new round of decline. The main support level is at $116,200, followed by the trend line at $115,500. If the price continues to fall, the next support levels will be $115,000 and $114,500. The most critical support level is at $112,500; once this level is breached, BTC may face a significant drop.

Conclusion

The Fed's interest rate cut decision has provided macro benefits for risk assets, including cryptocurrencies. Bitcoin's price is at a critical crossroads technically, with bulls trying to push it to new highs. The synergy between market sentiment and on-chain technical indicators makes the future price trend very interesting. Investors should closely monitor the battle around the $117,250 resistance level and the $115,500 support level, as this will largely determine Bitcoin's short-term direction.