Bitcoin Starts the New Week Higher as Critical Fed Decision Approaches! But Analysts Warn Downside Risk Isn't Over! Here's Why and the Critical Levels!

The leading cryptocurrency Bitcoin (BTC), which has experienced a sharp decline in the last two weeks, started the new week positively by rising above $110,000. Bitcoin, which spent the last four days below $110,000, rose 3.8% in the last 24 hours to $111,100. Altcoins are recovering, with Ethereum (ETH) gaining 4.3% in the last 24 hours to $4,060, reclaiming the $4,000 threshold. BNB, XRP, and Solana (SOL) all gained 3.9%, 4.5%, and 3.5%, signaling renewed optimism in the overall cryptocurrency market. It was stated that this rise in Bitcoin was due to investors regaining confidence in macroeconomic conditions. At this point, Bitcoin is painting a strong picture ahead of the US CPI data to be released on Friday and the Fed's October interest rate decision next week. Analyzing the latest situation in Bitcoin, BTC Markets crypto analyst Rachael Lucas stated that despite macroeconomic negativities such as US President Donald Trump's announcement of tariffs on China, investors are now pricing in positive events such as a possible interest rate cut in October. “The recent recovery in Bitcoin, currently trading above $110,000, has been driven by a combination of institutional inflows and improving macroeconomic conditions. At this point, demand for spot crypto ETFs has revived as investors are treating the recent sell-off as a buying opportunity. “Fed Chair Jerome Powell also acknowledged that labor market weakness persisted despite stronger-than-expected growth. This shift lowered bond yields and improved the liquidity environment for risky assets, including digital assets.” What are the Critical Levels to Watch in Bitcoin? Lucas also noted that Bitcoin is at a critical juncture, where the analyst said it is testing resistance between $111,700 and $115,500. According to the analyst, if Bitcoin experiences a decisive breakout above $111,000, it could cause a squeeze in the short term, which could accelerate bullish momentum. Lucas also said that the meeting between Trump and Chinese President Xi at the end of the month carries a “significant risk” for Bitcoin and cryptocurrencies. Apart from Lucas, Kronos Research CIO Vincent Liu also made a similar prediction. Liu said that the key levels to watch for BTC in the current climate are $107,000 and $110,000. “A break below structural support around $107,000 could trigger liquidations and a sharp market sentiment shift, especially if macro or geopolitical shocks resurface. Conversely, sustained buying pressure above $111,000 could increase momentum and open the door to a new upward wave,” Liu said. *This is not investment advice. Continue Reading: Bitcoin Starts the New Week Higher as Critical Fed Decision Approaches! But Analysts Warn Downside Risk Isn't Over! Here's Why and the Critical Levels!