Bitcoin Hits $113K as Traders Eye Fed Rate Cut for Next Rally

Bitcoin surged back to the $113,000 mark on Tuesday, lifting market sentiment ahead of Wall Street’s open and fueling speculation about a potential push toward new all-time highs.

Data shows BTC briefly touched $113,279, building momentum after holding firm above $110,000 over the weekend. The move came as traders began to eye macroeconomic shifts, including an expected U.S. Federal Reserve interest rate cut, as catalysts for renewed strength in the crypto market.

Analysts highlighted key technical levels regained during the rebound. Bitcoin reclaimed its 20-day simple moving average near $111,500 and pushed past the $112,000 threshold, levels that some traders see as springboards for further gains.

“Gold is breaking into record territory, and Bitcoin often mirrors those moves with a lag,” noted one market strategist, pointing to similarities between the two assets’ recent price action.

While some traders flagged $113,000 as a potential entry point for long positions, others urged caution. A lack of strong spot-market demand and visible sell orders stacked between $113,500 and $114,500 suggested that resistance remains in place.

Market data also revealed a concentration of leveraged short positions just above the current price zone, raising the prospect of a squeeze should momentum accelerate. Trading platforms tracking liquidation levels indicated that the $115,000 area could become a flashpoint in the near term.

Despite these headwinds, broader sentiment remains optimistic. Analysts argue that looser monetary policy from the Fed could provide the tailwinds needed for Bitcoin to revisit its previous highs.

Still, many caution that sudden liquidity flushes (sharp moves that reset support levels) remain a recurring feature of Bitcoin’s volatile market structure.