Bitcoin Price Eyes 111,000 Dollar Support Retest as RSI Hints at More Upside Bitcoin is currently in a phase of consolidation, establishing a lower high as it digests recent gains. This pause comes amid a favorable technical setup and growing anticipation of a pivotal shift in monetary policy from the Federal Reserve. The price action shows Bitcoin building a foundation for its next potential move. While it has pulled back from its recent peak, creating a lower high on the charts, this is a typical and often healthy behavior within a broader uptrend. It allows the market to catch its breath and gather strength for another leg up. A key indicator traders are watching is the Relative Strength Index, or RSI. This momentum oscillator is currently printing a bullish signal, suggesting that underlying buying pressure remains strong despite the sideways or slightly downward price movement. This type of divergence, where the RSI trends higher while the price itself is flat or dipping, can often precede a resumption of the upward trend. It indicates that the momentum is still positive, even if the price has temporarily stalled. Adding a fundamental tailwind to this technical picture is the widespread expectation that the Federal Reserve will begin cutting interest rates. Market participants are increasingly pricing in a rate cut in the coming months. Such a shift in policy would have significant implications for risk assets like Bitcoin. Lower interest rates make holding yield-bearing assets less attractive by comparison and increase the appeal of non-yielding assets that derive their value from price appreciation. They also make it cheaper to borrow money, which can increase liquidity in the financial system. This influx of capital often seeks higher returns, frequently flowing into markets like cryptocurrencies. A more accommodative Fed is historically seen as a positive catalyst for Bitcoin, potentially acting as a powerful accelerator for its price. The crucial level to watch on the downside is the 111,000 dollar zone. Analysts are noting that a retest of this area as new support appears to be in progress. A successful defense of this level, where the price touches it and then bounces higher, would be a very strong technical confirmation of the bull market’s health. It would demonstrate that buyers are actively stepping in at a higher low, solidifying 111,000 dollars as a sturdy floor from which the next rally can launch. In summary, Bitcoin is in a constructive consolidation phase. The combination of a bullish RSI divergence and the macroeconomic support of anticipated Fed rate cuts creates a potentially powerful setup. The ongoing process of retesting the 111,000 dollar support level is critical. If Bitcoin can hold this ground, it would significantly increase the probability of a fresh upward move, pushing prices toward new highs. The market is essentially pausing, waiting for a fundamental catalyst from the Fed, while the technicals line up for a potential breakout. All eyes are on whether the 111,000 dollar level will hold firm.
