​​Bitcoin Weekly Roundup: Why BTC Fell After Fed Rate Cut And Profit-Taking​

(MENAFN- DailyFX (IG)) ​​​Last week's Bitcoin roundup

​Bitcoin's decline on Friday appears largely driven by profit-taking after a recent run-up. The crypto market had climbed ahead of the US Federal Reserve's (Fed) decision to cut rates, and with Bitcoin hitting a one-month high on Thursday, some investors used Friday as an opportunity to lock in gains.

​Even though the Fed did deliver a 25 basis point rate cut, expectations of more aggressive easing had already helped boost risk-asset demand, particularly in cryptocurrencies. As those hopes adjust to what the Fed signals in its forward guidance, some traders grew cautious, leading to mild downward pressure on Bitcoin.

​Also contributing was the behaviour in derivatives and futures markets. Open interest remains elevated, and with many traders positioned for further gains, there is often a tendency for sharp moves down when sentiment shifts. Some of Friday's price action reflects this exposure.

​Bitcoin drops to key support zone ​Bitcoin bearish scenario:

​Bitcoin is weighing on the lower boundary of its $113,510.23-to-$111,982.45 support zone. A fall through it on a daily chart closing basis may lead to the June peak and 4 September low at $110,617.03-to--$109,385.95 to be revisited. Further down lies the early September low at $107,286.25.

​Bitcoin bullish scenario:

​As long as Bitcoin holds at the $111,982.45 early August low on a daily chart closing basis, a recovery towards the upper boundary of the support zone at $113,510.23 may be retested. Further up meanders the 55-day simple moving average (SMA) at $114,430.29.

​Only a swift bullish reversal, rise and daily chart close above Monday's $115,459.09 intraday high would indicate the the current key support area has done its job and held.

Bitcoin daily candlestick chart Source: TradingView Important to know

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