Bitcoin’s $116K Wall: A Tale of Stagnation and Hope! 🚧

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Lo! Behold, the mighty Bitcoin, now entrenched in a new resistance, as if a fortress of gold, standing resolute against the encroaching tides of despair! ⛰️

Yet, lo! Two potential catalysts, like mischievous sprites, hover on the horizon, promising to lift the spirits of the downtrodden investors! 🧙‍♂️

“BTC now trades at the upper edge of the range near $116,000, which remains resistance until decisively reclaimed,” Bitfinex said in a report on Tuesday. Thus spake the oracle, “Lo, the BTC doth linger at the upper edge, a mere whisper of the once-mighty $124,100, now a distant memory, as the resistance remains unyielding until the bold reclaim it!” 🧙‍♂️

The report added that since Bitcoin’s momentum has faded since it hit an all-time high of $124,100 on Aug. 14, and its price has been pulled below the cost basis of recent buyers who entered during the top, in the $108,000 to $116,000 range. Ah, the cruel irony of market cycles! 🧙‍♂️

Bitcoin is trading at $116,370 at the time of publication, according to CoinMarketCap. A number that seems to dance like a siren’s song to the eyes of the hopeful! 💸

The slight rebound over the past seven days comes as the US Federal Reserve is set to announce its interest rate decision on Wednesday, with market participants assigning a 96.1% probability of a 25 basis point cut, according to the CME FedWatch Tool. The Fed, that most enigmatic of institutions, prepares to speak! 🧙‍♂️

Analysts divided over Fed reaction

Market participants have been divided over how Bitcoin’s price will react if the Fed does announce a rate cut. Fundstrat co-founder Tom Lee cited the Fed reducing rates for the first time this year as a potential catalyst for Bitcoin and Ether (ETH) making “a monster move in the next three months.” A monster, you say? More like a sleepy giant! 🧙‍♂️

However, others are more skeptical about how it will unfold. Crypto analyst Ted said he is confident the Fed will cut rates, but outlined in an X post on Tuesday that Bitcoin could drop to $104,000 before reversing, or fall to $92,000 before rebounding to a new all-time high. A rollercoaster, but with no safety harness! 🧙‍♂️

The Fed cutting interest rates is typically bullish for risk-on assets, as traditional investments like bonds and term deposits become less appealing to investors. For bonds, it’s a sad day; for Bitcoin, a hopeful one! 🧇

However, analysts often caution that prices may still decline after such bullish events if the market has already priced in the possibility. The market, that fickle lover, always plays the long game! 🧙‍♂️

Overall, crypto market sentiment is divided among participants, with The Crypto Fear & Greed Index posting a “Neutral” score of 53 on Wednesday. A balance between greed and fear, like a tightrope walker on a windy day! 🎭

Q4 could serve as bullish catalyst for crypto

Another catalyst market participant is eyeing Oct 1, which marks the start of the fourth quarter of 2025, historically Bitcoin’s best-performing quarter, with an average return of 85.42% since 2013, according to CoinGlass. A quarter as golden as the fabled city of Kitezh! 🧙‍♂️

Meanwhile, Bitfinex analysts said that long-term holder confidence is still strong, as the recent sell-off, which saw Bitcoin down to $107,400 on Sept. 1, was largely driven by investors who bought within the past six months. A tale of fleeting optimism, indeed! 🧙‍♂️

“This dynamic suggests that investors who accumulated during the February – May correction used the recent bounce as an opportunity to exit profitably, creating meaningful headwinds for further upside momentum,” the analysts said. Thus, the dynamic doth reveal that those who accumulated during the February to May correction seized the recent bounce to exit profitably, thereby crafting headwinds for further ascent, as if the market itself were a fickle lover. 🧙‍♂️

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2025-09-17 09:00