Bitcoin Braces for $105K Retest After Fed Rate Cut Shatters Key Support

Bitcoin's foundation just cracked—and the fall could be brutal.

The Fed's rate cut triggered a support level collapse that sends BTC tumbling toward a critical $105,000 retest. This isn't a dip—it's a structural failure.

Market Mechanics Exposed

Traders watched in real-time as algorithmic sell orders amplified the Fed's move. Liquidity vanished faster than a Wall Street banker's ethics during bonus season.

Technical Breakdown

That key support level wasn't just a number—it was the bull market's backbone. Now broken, the path of least resistance points straight down toward six figures.

Institutional Impact

ETF flows reversed instantly as traditional finance remembered why they still keep 90% of their assets in bonds. Meanwhile, crypto natives see opportunity in the chaos.

The $105,000 level now becomes the ultimate litmus test—prove resilience here, or watch the narrative flip from 'digital gold' to 'high-risk asset' faster than you can say 'quantitative tightening.'

Support lost

On-chain data indicates that $115,200 was a significant level for Bitcoin, as it represented the cost basis of approximately 95% of the supply. Keeping it is critical for maintaining demand-side momentum.

The report noted that failing to sustain above this threshold increases the likelihood of reverting to the 85-95% quantile range, between $105,500 and $115,200.

Perpetual futures played a central role in Bitcoin’s recent price action, with open interest reaching a cycle high of $85.9 billion on Sept. 13, before policy-driven volatility led to a decline to $82.2 billion.

The fall reflected heightened sensitivity to macroeconomic catalysts as Leveraged traders were flushed around the FOMC meeting.

Short liquidations ahead of the Fed announcement triggered squeezes that fueled Bitcoin’s rally to $118,000.

CVD shift

However, the regime shifted abruptly following the pullback, with long liquidations spiking to dominate the liquidation rate at 62% as highly leveraged positions unwound.

The Cumulative Volume Delta across major exchanges has shifted from extreme selling to a near-balanced state, signaling a meaningful return of liquidity after persistent sell pressure dominated from late August through the FOMC meeting.

The stabilization highlights the critical role of futures markets in supporting the rally, as speculators positioned themselves for supportive policy outcomes.

The $105,500-$115,200 range represents the next major support zone where Bitcoin could find demand if current levels fail to hold.

This range corresponds to the cost basis for 85-95% of bitcoin supply, making it a critical battleground for bulls and bears.

Market dynamics suggest Bitcoin’s path forward depends heavily on maintaining positions above key on-chain cost basis levels while derivatives markets continue to normalize after the Fed-induced volatility.