According to some analysts, it has become “visible” that Bitcoin will test the $120,000 level in the coming days.
According to Bitbank analyst Yuya Hasegawa, it may take up to a week for the market to fully absorb the effects of the FED's interest rate cut after a nine-month hiatus.
“The continued risk appetite following the FOMC meeting makes the improvement in the technical outlook an additional support element for Bitcoin. This puts the $120,000 test within reach,” said the Tokyo-based analyst, noting that a full reversal could be on the horizon following a successful breakout.
Next week's statements from Fed Chair Jerome Powell and Vice Chair for Supervision Michelle W. Bowman will be closely watched. The FOMC's updated projection suggests the possibility of two additional interest rate cuts in 2025, but Powell hasn't made a firm commitment on the matter.
A strong dollar and weak bonds (rising yields) are the primary risks for now, according to Hasegawa. However, he noted that this is a short-term reaction resulting from markets pricing in too sharp a discount for next year.
Meanwhile, Jake Ostrovskis, head of OTC trading at Wintermute, noted that investors in the options market are predominantly selling premiums and placing upward limits. He said, “Trading is driven by call spread selling in the $125,000-$150,000 range. This suggests investors don't expect Bitcoin to break out much beyond this range.”
*This is not investment advice.
