The U.S. Federal Reserve delivered a widely expected 25 basis point rate cut on Wednesday, marking its first easing move in more than a year.
Yet despite the policy shift, Bitcoin (BTC) showed little immediate reaction, holding just above $111,000 as traders digested the implications of a softer monetary stance.
The Fed’s decision was accompanied by comments from Chair Jerome Powell, who described the move as part of a “data-dependent” approach. While acknowledging that inflation pressures have eased, Powell emphasized that the central bank would proceed cautiously with further cuts – a tone markets interpreted as cautiously dovish.
Muted Reaction, But Macro Winds Are Shifting
Bitcoin had already pulled back from its recent local high near $116,000 ahead of the Federal Open Market Committee (FOMC) meeting, and Wednesday’s announcement did little to shake it out of its narrow range. The price continues to oscillate between $110,500 and $113,000, showing signs of consolidation rather than breakout momentum.
Analysts say the subdued reaction isn’t necessarily bearish – it may reflect that the rate cut was already priced in. The bigger question, they note, is whether the Fed’s signal of gradual easing will eventually reignite risk appetite later in the quarter.
A Calm Pullback Before the Storm
Market strategists broadly agree that the latest decline doesn’t mark a change in trend. It’s a common pattern before major macro catalysts, they note – traders lock in gains, reduce leverage, and wait for clarity.
“If Powell sounds dovish, that could light the next stage of the rally,” one analyst said. “But if the Fed insists on a hawkish tone, Bitcoin could test lower levels before rebounding.”
Ali Martinez: Watching the Liquidity Gap Above $120K
On-chain strategist Ali Martinez believes Bitcoin’s next major move will depend entirely on whether it can pierce through the $120,000 barrier. He points out that above this level lies what he calls a “liquidity vacuum” – a region with thin resistance that could allow prices to accelerate quickly.
“Between $120K and $143K, there isn’t much friction,” Martinez explained. “If Bitcoin manages a clean break, momentum traders could step in aggressively, pushing it toward that $143,000 zone in a short period.”
For Martinez, the current correction is simply a “breather before the next expansion phase”, as long as Bitcoin holds above key structural supports.
Bitcoin $BTC needs to break above $120,000 to open the path toward a new all-time high of $143,000, according to the Pricing Bands. pic.twitter.com/hFuFKQ7OIF
— Ali (@ali_charts) October 28, 2025
Michaël van de Poppe: Holding $112K Keeps the Trend Alive
Analyst Michaël van de Poppe sees the market’s earlier moves as a textbook example of pre-FOMC positioning. According to him, Bitcoin’s price behavior remains consistent with an ongoing uptrend.
He notes that the $112,000 area has acted as a strong support zone – a level where buyers repeatedly step in. As long as BTC stays above it, Poppe believes the uptrend remains intact.
“The dip we saw before the meeting is normal,” he said. “If Bitcoin clears the resistance region around $115,600–$116,200, the next impulsive wave could begin almost immediately.”
So far, so good for #Bitcoin.
Retest of the lower levels to find buying pressure and that’s, with a weak bounce, been found.
Volatility should be going up enormously today as the FOMC event kicks in, and I would, again, urge nobody to trade leverage on a day like this if… pic.twitter.com/etO845EBmS
— Michaël van de Poppe (@CryptoMichNL) October 29, 2025
Alex Kuptsikevich: Technical Picture Remains Strong
From a macro-technical perspective, FxPro senior analyst Alex Kuptsikevich highlighted that Bitcoin is still trading well above the 200-day SMA. That alignment, he said, reflects sustained strength rather than exhaustion.
“Bitcoin has recovered from $108,000 and continues to trade comfortably in an uptrend,” Kuptsikevich noted. “The real test now is the $117,000 to $120,000 resistance zone. A decisive breakout would confirm that the bullish structure remains dominant.”
Kuptsikevich described the current phase as a “controlled consolidation” rather than a reversal, pointing out that most long-term trend signals are still flashing green.
Timothy Misir: Support Cluster Between $111K–$112K
Meanwhile, BRN analyst Timothy Misir took a data-driven approach, using cost-based heat maps to identify critical zones of buying and selling activity. According to his models, the $111,000–$112,000 range has become a dense support cluster, while $117,000 remains the immediate ceiling.
“Bitcoin’s price is coiling in a tight band,” Misir said. “If bulls manage to break that upper resistance decisively, it could unleash the next leg of the bull market. Failure to hold the lower band, on the other hand, risks a slide below $110,000 before stability returns.”
Misir believes that short-term volatility around macro events often shakes out weaker hands – but historically, those corrections have tended to create strong accumulation opportunities for long-term investors.
[Insert Timothy Misir tweet here]
Fed Cut May Set the Stage, But Patience Is Key
While the immediate market reaction was subdued, analysts agree the long-term implications of the Fed’s move are significant. A sustained easing cycle could lower real yields and increase appetite for non-yielding assets like Bitcoin – a pattern seen during previous liquidity expansions.
For now, Bitcoin’s technical posture remains neutral-to-bullish: strong support near $111K, major resistance around $117K, and a breakout zone near $120K. If macro sentiment continues to improve, analysts say the breakout could come sooner than most expect.
As one strategist put it, “This wasn’t the spark – it was the match being lit. The fire will come later.”
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/here-is-what-bitcoin-analysts-expect-after-the-feds-25bps-rate-cut/