Analyst: Bitcoin may retest the $120,000 level

ChainCatcher news, Bitbank analyst Yuya Hasegawa stated that Bitcoin traders may need a week to fully digest the impact of the Federal Reserve's first rate cut in nine months.

With risk appetite continuing after the FOMC, the improvement in technical sentiment is seen as an additional positive for Bitcoin, making it possible for BTC to test $120,000. If Bitcoin successfully breaks through $120,000, a complete pullback may surface. The market may need about a week to digest this outcome before returning to normal and refocusing on inflation and interest rate changes.

Next week, Federal Reserve Chairman Jerome Powell and Vice Chair and Regulatory Supervisor Michelle W. Bowman are scheduled to speak on Tuesday. Although the revised dot plot released by the FOMC this week indicates that there may be two more rate cuts in 2025, Powell made no commitments. Traders will closely interpret the subtle changes in Powell's or other FOMC members' speeches.

Looking ahead to the October meeting, 72% of users on Myriad, the prediction market under Decrypt's parent company Dastan, expect another 25 basis point rate cut, while about 11% believe the Federal Reserve will keep rates unchanged, which will be the second-to-last meeting of the year.