Key points:
Bitcoin faces problems recovering from its dip to $112,000 as traders agree on the odds of a fresh dip.
Nasdaq Performance is on the radar as overheated RSI conditions raise concerns over a crypto knock-on effect.
A senior Federal Reserve official puts faster interest-rate cuts on the table.
Bitcoin (BTC) attempted to flip $113,000 to support on Wednesday as traders buckled up for BTC price weakness into Q4.
New BTC price bottom targets include $108,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering near its daily open level.
The pair saw only a modest rebound from its slump to its lowest levels in nearly two weeks, with $111,600 currently support.
Commenting on the latest price action, market participants focused on likely bounce levels in the event of a fresh dip.
“I’m interested to see whether $BTC will hold these crucial levels for support. If that’s the case, then $115K upwards would be the next clear resistance point,” crypto trader, analyst and entrepreneur Michaël van de Poppe responded on X.
If not? Probably another cascade to $106-108K –> max buy zone.”
Popular trader BitBull also had a downturn on the radar, with the 100-day exponential moving average (EMA) of particular interest.
“$BTC bounced back from its daily EMA-100 level. But you could see further dump too,” he told X followers on the day.
“Last time, BTC lost this level which resulted in a capitulation. With Q4 coming, I think whales will try to push BTC below this level to create max pain.”
Crypto investor and entrepreneur Ted Pillows, meanwhile, eyed the relationship between Bitcoin and the Nasdaq 100 index, as seen through the relative strength index (RSI).
“$NASDAQ daily RSI has reached 78, its highest level since July 2024,” he observed.
“Last time Nasdaq daily RSI was this high, a 17% dump happened in 2-3 weeks. And because crypto is highly correlated to Nasdaq, a dump will happen in $BTC and alts too.”
A 17% copycat retracement from current prices would put BTC/USD at around $94,000.
Bowman sees “faster pace” on Fed rate cuts
Fresh hints of an interest-rate cut from the US Federal Reserve were not enough to improve the mood.
Related: Biggest long liquidation of the year: 5 things to know in Bitcoin this week
These came in the form of a speech by Vice Chair for Supervision Michelle Bowman, in which she warned that the Fed risked being “behind the curve” on cuts.
“In my view, the recent data, including the estimated payroll employment benchmark revisions, show that we are at serious risk of already being behind the curve in addressing deteriorating labor market conditions,” she told the 2025 Kentucky Bankers Association Annual Convention in Asheville, North Carolina.
“Should these conditions continue, I am concerned that we will need to adjust policy at a faster pace and to a larger degree going forward.”
Earlier, Cointelegraph reported on analysis from former BitMEX CEO Arthur Hayes, in which he argued that US President Donald Trump would use senior Fed officials to influence policy.
Trump has vocally demanded rate cuts throughout 2025, even threatening to fire Fed Chair Jerome Powell over the issue. Powell himself was due to speak at the Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon in Warwick, Rhode Island, later Tuesday.
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