Bitcoin Price Prediction: BTC Hits Monthly High Due to Fed Rate Cut, Expected to Challenge $137,000 with Multiple Favourable Information.

After the Fed lowered interest rates by 25 basis points, the price of Bitcoin soared to a one-month high, briefly reaching 118,000 USD. This rise was driven by multiple factors, including continued capital inflow into spot ETFs, on-chain data showing large-scale withdrawals, and bullish futures positions among traders. Analysts point out that if Bitcoin can hold the key support at 115,000 USD, the price is expected to rise further to 123,000 USD or even 137,000 USD, but if it falls below, there is a risk of a pullback.

Macro Positive: Fed Rate Cut Drives Bitcoin Rise

After the Fed cut interest rates by 25 basis points on September 18, 2025, the price of Bitcoin surged to its highest level in a month, reaching approximately $118,000. Fed Chairman Jerome Powell noted in his speech that employment growth has slowed and the unemployment rate has slightly increased, indicating that the central bank may take a more dovish stance in the future.

After the interest rate cut announcement, Bitcoin's intraday trading fluctuated in a narrow range between 116,000 and 118,000 dollars. Compared to the previous week, trading volume has increased, and on-chain data shows that traders are building new bullish positions, which may help push Bitcoin towards the 120,000 dollar level.

Technical Analysis: Focus on Key Price Levels

Analyst Michael van de Poppe pointed out that $119,000 is a key resistance level for Bitcoin. If it can break through this point, the price may pave the way for a rise to $123,700. Another analyst, Ali Martinez, emphasized that $115,440 is an important support level. If Bitcoin can stabilize above this price, it has the potential to rise to $137,300.

The downward scenario also presents potential risks. Bitcoin has support levels at $114,700 and $111,900, where buyers may enter the market. If Bitcoin falls below the $115,000 support zone, the price could pull back to $110,000, or even $100,000. Some analysts believe that this range is a key area that needs close attention.

Institutional Demand and On-Chain Data Provide Upward Momentum

Throughout September, there was a continuous net inflow of funds into the Spot Bitcoin ETF. These institutional purchases provided support for Bitcoin in the range of $115,000 to $120,000. Exchange data shows that funds are being withdrawn in large amounts from centralized platforms, which has reduced the supply available for immediate trading. The open interest in the Bitcoin futures market is steadily increasing, indicating that traders are establishing new positions rather than closing existing ones. The Cumulative Volume Delta is moving upward, demonstrating ongoing buying pressure, and the daily trading volume has surged by 41%, exceeding $67 billion.

Derivatives data shows that traders are increasing leverage, which could amplify price fluctuations in either direction. Short liquidations reached $232 million, forcing shorts to cover, thereby increasing bullish momentum.

Synergistic Effect: Broader Markets Also Benefit

Driven by the rise of Bitcoin, the broader crypto market also benefited. After Powell announced the interest rate cut, altcoins generally recorded strong gains. Ripple's XRP rose by 3%, while BNB Coin hit a new all-time high. Other major tokens, including SOL, ADA, and DOGE, all rose by over 5%.

The U.S. Securities and Exchange Commission (SEC) has approved a new general listing standard for crypto ETFs, a development that could pave the way for the approval of ETFs for cryptocurrencies other than Bitcoin. Historically, the S&P 500 Index has averaged a 15% rise in the year following a Fed rate cut. Given Bitcoin's correlation with traditional markets, this precedent also supports bullish expectations.

Conclusion

Under the multiple forces of macroeconomic benefits, strong institutional support, and positive on-chain data, Bitcoin's current rebound appears particularly solid. It is not merely an outbreak of short-term speculative sentiment, but also a reflection of the structural transformation of a mature market. Bitcoin is currently testing the key resistance level of $119,000, and this moment will determine whether it can convert the recent upward momentum into a more sustained bullish market cycle. The market will closely monitor whether it can effectively hold the support at $115,000 to ensure that its upward path remains unobstructed.