Bitcoin at $111,320 Eyes Breakout Amid Volatility and Fed Rate Cuts

Bitcoin's price at $111,320 is trying to break a two-week decline, needing a strong daily close above $115,000 to confirm bullish momentum.

After hitting $121,000 in July, Bitcoin's August trading stayed between $113,000-$120,000, with a recent 3.2% drop showing seller pressure.

Upcoming Fed rate cuts, with an 89.7% chance in two weeks, could support Bitcoin's long-term growth, though altseason may need zero rates.

Bitcoin faces a critical moment as it trades at $111,320.05 on Coinbase, attempting to break a two-week daily downtrend. The cryptocurrency has shown heavy volatility between June and September, leaving traders focused on whether a decisive breakout can emerge soon

According to analyst Rekt Capital, “BTC is attempting to break its two-week old Daily Downtrend. Daily Close above the Downtrend and/or post-breakout retest would confirm the breakout.” This statement highlights strong daily close to confirming bullish momentum.

Price movements reveal Bitcoin battling shifting resistance and support zones. The asset started near $106,000 in June, dipped to $101,000 mid-month, then surged into July with a powerful rally

Source: Rekt Capital

Consequently, Bitcoin reached highs around $121,000 by late July before consolidating in August. That sideways action ranged between $113,000 and $120,000, with sharp red candles exposing seller pressure.

Volatility Around Trendlines

The August consolidation phase created a blue descending trendline that capped attempts to break higher. This resistance currently intersects between $115,000 and $117,000. Bitcoin tested the zone multiple times but failed to break through

Additionally, September got off to a rough start, with prices plunging below $115,000 and driving Bitcoin to its current levels at $111,320. The cryptocurrency is currently trading below both its downtrend resistance and previous support after this 3.2% fall, which indicated the start of a corrective phase.

With noticeable increases during rallies and decreases, daily volume has reflected these fluctuations. The declining trendline overhead continues to be the resistance, while support is currently located close to $110,000. Therefore, the next move of the market may depend on whether Bitcoin obtains traction above $115,000 again.

Fed Cuts Add to Market Dynamics

Beyond technicals, macroeconomic forces add another layer. Analyst Daan Crypto Trades noted, “Just two weeks until the next FOMC Meeting. As it stands, there is a 89.7% chance that rates get cut again.” He added that while one or two cuts may not shift Bitcoin instantly, the long-term effect remains supportive for crypto markets. Moreover, many believe a true altseason may not begin until rates return to zero.

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