After briefly touching record highs above $124,000 in mid-August, Bitcoin has slipped into a volatile phase that analysts say could extend in the weeks ahead.
Despite attempts to stabilize, the world’s largest cryptocurrency remains locked in a downward trend, hovering around the $106,000–$108,000 zone.
Matrixport, a digital asset research firm, cautioned that Bitcoin’s latest pullback may not be over. The company highlighted that seasonal pressures and lingering uncertainty around U.S. interest rate cuts could fuel further price swings.
While rate cuts are often perceived as a bullish driver for crypto, Matrixport warned that the path to looser monetary policy may prove uneven, reducing the likelihood of a smooth rebound.
Adding to the cautious outlook, 10X Research described $108,000 as a decisive battleground for Bitcoin’s next move. Analysts there argued that whether BTC can hold this level will shape the broader market trend, potentially signaling either the resumption of the bull run or the start of a deeper correction.
Market activity shows rising profit-taking among long-term holders, combined with stagnating ETF inflows and heightened volatility. Technical charts, meanwhile, fail to present a clear directional signal, leaving traders waiting on fresh catalysts.
That catalyst may arrive soon: U.S. labor market data and the Federal Reserve’s September 17 meeting are expected to weigh heavily on sentiment. Until then, analysts suggest the risks around Bitcoin remain elevated, framing the current moment as a stress test for investor discipline.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-faces-critical-test-ahead-of-fed-decision/