What Will Bitcoin Do Next? Key Developments After Falling Below 112,000 USD

Bitcoin, the leading cryptocurrency in the market, has recently tried to stabilize around $112,000 after a sharp fall to $110,000 on Sunday, which means a 10% decrease from the all-time high (ATH). Before the September meeting of the Federal Reserve (Fed), market expert Doctor Profit highlighted on X (previously Twitter) the upcoming impacts and the most important technical indicators that paint a bleak picture for Bitcoin (BTC) and the market in general. Will the Fed's rate cut cause a new market adjustment? Dr. Profit emphasized that the current market environment is distinctly different from previous cycles. He believes that the Fed's anticipated interest rate cut next month could trigger a strong correction for both stocks and cryptocurrencies.

According to him, the first significant cut often brings instability, leading to many conflicting opinions among investors, and he predicts that this time will be no exception. Looking at the technical indicators of Bitcoin, the outlook seems pessimistic. Experts note that the Chicago Mercantile Exchange (CME) has a significant gap around the $93,000 mark that needs to be addressed, with most of the liquidity concentrated in the $90,000 to $95,000 range.

The chart shows the potential for adjustment, highlighted by a double top pattern and decreasing trading volume. Notably, Doctor Profit asserts that the most recent price surge bringing BTC to $124,000 is primarily due to futures market activity rather than the spot market, reinforcing a bearish sentiment. Bitcoin Price Forecast Market sentiment plays an important role in this analysis. On-chain metrics and sentiment indicators show that retail investors often buy high and sell low. Experts reveal that in the latest Bitcoin fall from 110,000 dollars to 98,000 dollars around May to June this year, it was mainly institutional investors who took advantage of the lower prices, while retail buyers suffered losses. Doctor Profit added that when prices rise, retail investors have entered the market at higher prices, which could lead to liquidation as Bitcoin approaches the important liquidation zone from $90,000 to $95,000. In addition to the Bitcoin price movements, Doctor Profit warns that the current market sentiment reflects a false sense of optimism, indicating that the widespread belief in a sustainable altcoin season is misguided. He warns that as enthusiasm grows, larger investors may begin to liquidate their positions, putting retail investors at risk. Looking to the future, he predicts that the price of Bitcoin could soar to $145,000 to $150,000, which is an increase of 34% compared to the current level. This expert also expects Ethereum to reach a range of $7,000 to $8,000 after the correction in September.

As of the time of writing, Bitcoin is trading at $112,560, recording a fall of 6% over the fourteen-day period. On the other hand, Ethereum continues to be among the best-performing coins in the market with a gain of 5% during the same period.