Bitcoin Surges Past $117K After Fed Rate Cut – Eyes $120K Next (Updated: September 19, 2025)
- Why Is Bitcoin Rallying After the Fed’s Rate Cut?
- Technical Analysis: BTC’s Path to $120,000
- How the Fed’s Decision Impacted Crypto Markets
- Short-Term BTC Price Projections
- FAQ: Bitcoin’s Post-Fed Rate Cut Rally
Bitcoin (BTC) rallied 1.9% to $117,300 on September 18, 2025, following the Federal Reserve’s decision to cut interest rates by 25 basis points. The cryptocurrency briefly tested support at $115,000 before breaking through resistance at $117,000, with technical indicators suggesting bullish momentum. Analysts now eye $120,000 as the next target, though macro uncertainty remains a key factor. Here’s a deep dive into the price action, Fed implications, and what’s next for BTC.
Why Is Bitcoin Rallying After the Fed’s Rate Cut?
Bitcoin’s price surged to $117,300 on Thursday (September 18), up 1.9% in 24 hours, according to CoinGecko. The MOVE came after the Federal Reserve announced its first rate cut since December 2024, lowering the benchmark rate to 4.00%-4.25%. Historically, BTC has reacted positively to looser monetary policy, as lower rates reduce the opportunity cost of holding non-yielding assets like cryptocurrencies. Jerome Powell’s cautious tone initially caused volatility, but buyers quickly absorbed liquidity below $115,000, propelling BTC higher.
Technical Analysis: BTC’s Path to $120,000
The 1-hour chart reveals a bullish continuation pattern. After holding support at $115,000, BTC formed a consolidation triangle with a slightly descending top and a base NEAR $117,000. The 56-period Exponential Moving Average (EMA) at $116,300 now acts as dynamic support. Key observations:
- RSI at 60: Shows moderate strength without overbought conditions. A break above 65 could confirm upward momentum.
- Critical levels: A hourly close above $117,400 may open the door to $118,200 and $119,200. Conversely, rejection at this zone could retest the EMA.
“The market structure favors buyers as long as BTC holds above $116,300,” noted a BTCC analyst. “But traders should watch macro data closely—any hawkish Fed signals could trigger profit-taking.”
How the Fed’s Decision Impacted Crypto Markets
The Fed’s 25-basis-point cut was widely anticipated, but Powell’s emphasis on data-dependent future moves kept traders on edge. Risk assets, including Bitcoin, initially rallied on the news before paring gains. Reuters reported that the central bank’s cautious stance reflects lingering inflation concerns, keeping markets sensitive to upcoming employment and CPI data.
“Labor market conditions influenced the Fed’s decision.” — CNN Brasil (September 17, 2025)
Short-Term BTC Price Projections
Technicals suggest two scenarios for Bitcoin:
- Bullish: A sustained break above $117,400 with rising volume could target $118,200–$119,200, then $120,000.
- Bearish: Losing $116,300 might retest $115,000 support, where buyer reaction would be critical.
Macro factors remain pivotal. Continued dovish Fed rhetoric could fuel the rally, while hotter-than-expected inflation data might reignite consolidation between $115,000 and $117,000.
FAQ: Bitcoin’s Post-Fed Rate Cut Rally
What caused Bitcoin’s price surge on September 18?
The Fed’s rate cut reduced borrowing costs, making riskier assets like BTC more attractive. Technical buying after the $117K breakout added momentum.
Is $120,000 a realistic target for BTC?
Yes, if BTC holds above $116,300 and macro conditions stay favorable. However, volatility is likely as traders digest upcoming economic data.
How does BTCC view this rally?
BTCC analysts caution against over-optimism, noting that Fed policy shifts often cause short-term volatility. Long-term holders, though, may see dips as buying opportunities.
