Bitcoin Price Prediction: Analysts Eye $113K After Fed Rate Cut

Fed Rate Cut Fuels Renewed Bullish Momentum for Bitcoin

The second rate cut by the U.S. Federal Reserve this year, dropping its baseline to 3.75-4.0% caused a brief Bitcoin bloodbath, sliding the price from $113,000 to approximately $110,000. The shift highlighted how the market is sensitive to changes in policies in the wake of continued inflation concerns and the effect of the government shutdown on economic statistics.

However, as traders shift positions, BTC is once again showing signs of strength. Monetary easing and Donald Trump's tariff uncertainty have led to a mixed Bitcoin price prediction, yet its recovery suggests that confidence is improving despite the uncertainties.

Key Levels Define the Current Bitcoin Price Prediction

Analyst Ted pointed out a critical range that defines the near-future direction of BTC. The leading cryptocurrency has recently swung out of the $107,000-108,000 support, which is a historically powerful demand level. Bitcoin is currently trading around the levels of $111,000, with the next resistance at around $113,000-$114,000. A convincing close above $113,500 could shift sentiment towards $117,900 and potentially $121,000.

BTCUSD 1D CHART | SOURCE: X

However, failing to clear this zone could subject the asset to weakness and potential re-tests of the $105,000-$107,000 zone. Below this is the psychological level of $100,000, which is the last support before a deeper retracement. On the whole, this setup indicates a fragile equilibrium with buyers reasserting their dominance, though they have to maintain their momentum to confirm the bullish bias.

FOMC Pattern Repeats Aid Rising Confidence

Additionally, analyst AlΞx Wacy noted a unique pattern, where BTC falls by 5-7% following every Federal Open Market Committee (FOMC) meeting, and then soars to new heights shortly thereafter. The most recent 5.04% downward trend after the recent FOMC aligns with this historical pattern. Every correction has been followed by a strong rebound that strengthens long-term investors' confidence.

BTCUSD 12H CHART | SOURCE: X

If history repeats, a Bitcoin price prediction to the $125,000–$130,000 range, fueled by post-FOMC recovery momentum, is imminent. This pattern reflects not just retail optimism but also institutional positioning that is synchronized with monetary policy cues.

Short Squeeze Setup Could Ignite a Parabolic Surge

According to analyst Martini, the BTC liquidation map shows more than $20 billion in short positions that are vulnerable above $128,000. Such a position is an indication of a possible short squeeze, where forced liquidations increase the upside momentum.

BTC Exchange Liquidation Map | Source: X

Moreover, with the heavily skewed leverage against buyers, a surge will create inflows, propelling the crypto to new highs. This supports the growing narrative that liquidity forces might be driving a new rally.

Most importantly, the existing Bitcoin price prediction is pegged on the resistance zone at $113,500 and the evolving macro environment. With technical indicators gaining power and liquidity strains intensifying, the leading digital asset globally could experience the next big surge, provided buyers continue to inject more capital.