Bitcoin Finds Its Floor as RSI Turns Up Ahead of Fed Decision
BTC holds $111K support while traders eye momentum recovery and macro headwinds before the Fed’s policy announcement.
Bitcoin is retesting support around $111,000 after a volatile start to the week. Technical signals point to continued upside momentum, though traders remain cautious as the Federal Reserve’s rate-cut decision weighs on risk appetite.
Bitcoin’s latest rally paused near $114,000, with traders watching closely as BTC/USD consolidates above key support levels. Data from Cointelegraph Markets Pro and TradingView, the benchmark cryptocurrency has held its gains after a strong weekly close, suggesting a short-term floor may be forming.
Momentum Indicators Point Higher
Analyst Rekt Capital identified two major supports for bulls to defend: the 21-week exponential moving average (EMA) near $111,200 and the prior weekly close at $114,500. Bitcoin’s weekly candle finished above both, confirming a potential breakout structure.
“The retest is in progress,” Rekt Capital noted, implying that a successful bounce could validate these levels as new support zones.
Fellow trader Ted Pillows added that BTC’s $113,500 zone remains the key line to hold. “As long as Bitcoin holds this, we’re going higher,” he said. “Losing it could trigger a correction toward $110,000.”
RSI Divergence Fuels Bullish Bias
The Relative Strength Index (RSI), a momentum oscillator measuring buying pressure, flashed a hidden bullish divergence on lower time frames. Price carved a higher low while RSI made a lower low, hinting at renewed upside energy.
However, on longer time frames, RSI still shows trend fatigue, forming successive lower highs even as Bitcoin prints record prices, a classic setup for volatility.
Macro Clouds Ahead
U.S. stock futures eased ahead of this week’s Federal Reserve meeting, as markets weigh the impact of potential rate cuts. Historically, BTC/USD has formed local lows on Tuesdays, aligning with the current support retest cycle.
Research firm Mosaic Asset Company noted that “loose financial conditions” and “robust earnings growth” continue to support the broader risk-asset rally, even as policy uncertainty lingers.
If Bitcoin can maintain support above $111K, momentum models suggest a path toward $118K–$120K. A breakdown, meanwhile, could reopen $108K–$110K liquidity pockets.
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