Bitcoin Price Analysis | Market Fluctuation Intensifies After Rate Cut, Challenging New Swing Trading Highs

As the Federal Reserve of the United States announces another interest rate cut and halts quantitative tightening, market liquidity increases, and Bitcoin price volatility intensifies. (Background: Did Musk transfer 400 million Bitcoin on-chain? Bitcoin Hyper ($HYPER) presale breaks through 25 million USD) (Background information: What signals were released at the latest Fintech conference of the Federal Reserve?) (This article is a sponsored piece provided by Bitcoin Hyper and does not represent the views of BlockTempo. The article involves meme coins related tokens, which may carry extremely high volatility risk and is not investment advice. Please refer to the end of the article for a responsibility warning.) The Federal Reserve (Fed) has recently announced another rate cut of 25 basis points, lowering the federal funds rate range to 3.75% to 4%, the lowest level in nearly three years. This move continues the monetary easing cycle, with market funds flowing back into risk assets. The Fed passed the resolution with 10 votes in favor and 2 against, indicating that the decision-making body has largely formed a consensus for easing. Chairman Powell emphasized the alleviation of inflationary pressures and the risks of economic slowdown during the press conference. CME FedWatch data shows that the probability of another 25 basis points rate cut in December is as high as 84.8%, indicating that U.S. monetary policy has clearly shifted to a stimulus phase. The USD index (DXY) briefly dropped to 98.7 after the meeting, with global funds reallocating towards high volatility assets. Historical data shows that whenever the Fed enters a rate-cutting cycle, Bitcoin typically sees an average increase of over 40% in the following 3 to 6 months. The current macro environment has established a strong liquidity foundation for Bitcoin and created conditions for the extension of its technical structure. Technical Structure Analysis of Bitcoin After the announcement of the rate cut, the technical chart of Bitcoin (BTC/USD) shows that the bullish structure remains intact. The 4-hour chart reveals that the price has been operating along an upward channel since rebounding from the October low of 104,000 USD. The Fibonacci retracement level of 0.5 is around 112,250 USD, serving as short-term support, while resistance is concentrated in the range of 117,600 USD to 120,000 USD, which corresponds to both the 0.618 Fibonacci level and previous highs. If there is a short-term pullback, 112,200 USD will be the key defense level, and a drop below this area may lead to a retest of the 108,600 USD support. The technical structure remains a healthy correction pattern, with no significant signs of trend reversal. Market Sentiment and Mid-term Forecast On-chain data shows that the Bitcoin stock on exchanges continues to decline, with the proportion of long-term holders rising to 71%, reflecting limited selling pressure. In the derivatives market, the funding rate for futures remains positive, indicating stable bullish sentiment. As the Fed's rate-cutting cycle continues, market expectations for a liquidity rebound by year-end will further boost risk appetite. The project party claims that historically, when the Fed cuts rates consecutively twice, Bitcoin has averaged a 20% to 30% increase within 60 days. If this trend continues, BTC's price range by the end of the year is expected to reach 120,000 to 125,000 USD, with an optimistic scenario possibly challenging 128,000 USD. Potential Boosting Effect of Bitcoin Hyper As the mainchain Bitcoin gradually stabilizes, Layer 2 ecosystem projects are driving overall market vitality. One of the noteworthy projects is Bitcoin Hyper ($HYPER). The official announcement states that the project is based on the Solana Virtual Machine (SVM), combining the security of Bitcoin with the efficient structure of Solana, bringing lightning-fast transaction speeds and smart contract capabilities to BTC. The project party claims that Bitcoin Hyper has completed a presale of over 25.2 million USD, with a token price of 0.013195 USD. Its Layer 2 mechanism transforms Bitcoin into a programmable asset that can participate in DeFi and gaming applications, seen as a new driving force for the prosperity of the Bitcoin ecosystem. Some analysts state that as BTC's price rebounds and liquidity increases, market demand for such projects will also amplify, forming a growth pattern of dual circulation between the Bitcoin mainchain and Layer 2. Purchase Bitcoin Hyper on the official website. Conclusion: The rate-cutting cycle opens a new phase for Bitcoin The Fed's decision to cut rates marks a turning point in the liquidity cycle, with Bitcoin serving as a barometer for global risk assets, its trend once again supported by the macro environment. The technical structure is solid, momentum signals are bullish, and the on-chain liquidity improvement all lay the foundation for a mid-term upward trend. If the price successfully breaks through the key resistance of 117,600 USD, Bitcoin may have the potential to challenge 125,000 USD by year-end. As the market gradually digests policy and inflation data, the next round of increases for crypto assets may have quietly begun. Sponsored Disclaimer: The content of this article is a sponsored piece provided by the contributor, and the contributor has no relationship with BlockTempo. This article does not represent the views of BlockTempo. It is not intended to provide any investment, asset advice, or legal opinions and should not be viewed as an offer to buy, sell, or hold assets. Any services, programs, or tools mentioned in this sponsored piece are for reference only, and the final actual content or rules are subject to the announcements or explanations from the contributor. BlockTempo is not responsible for any potential risks or losses and reminds readers to conduct their own careful verification before making any decisions or actions.