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- Bitcoin consolidates around $111K ahead of Fed decision, with support at $110K.
- Institutional profit-taking and weak ETF flows cap upward momentum.
- Traders should watch key resistance at $113K–$117K and upcoming macro catalysts.
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Bitcoin’s price remained largely range-bound around $111,000 on Monday, signaling a cautious market ahead of the U.S. Federal Reserve’s interest rate decision scheduled for September 17. According to The Block, bitcoin rose 0.44% in the past 24 hours to trade at $111,074 as of 12:22 a.m., reflecting muted investor activity despite significant economic data releases.
August’s U.S. nonfarm payrolls showed an increase of just 22,000 jobs, well below the expected 75,000. This weaker-than-anticipated data suggests a potential slowdown in the U.S. economy, reinforcing expectations for a more dovish Fed stance. The CME FedWatch Tool now signals a 100% probability of a rate cut, with a 25-basis-point reduction widely anticipated and a smaller 10% chance of a larger 50-basis-point cut.
Institutional Flows and Price Barriers
Despite dovish expectations, bitcoin’s upward momentum has been capped. BTC Markets’ crypto analyst Rachael Lucas highlighted that profit-taking by institutional desks, combined with relatively flat ETF flows, has kept the cryptocurrency consolidating in a tight range. Kronos Research CIO Vincent Liu noted that even if the Fed cuts rates, bitcoin could remain subdued due to economic weakness and cautious risk sentiment.
ETF flows for both bitcoin and Ethereum have slowed compared to record highs in previous months. This indicates a cooling in overall market momentum, as institutional capital has been a key driver in the current cycle. Analysts suggest that without significant liquidity expansion or renewed ETF inflows, breaching $120,000 remains unlikely in the short term.
Key Levels and Market Catalysts
Lucas outlined key technical levels for traders to monitor: support at $110,000 and resistance between $113,400 and $117,100. Breaking these levels could signal absorption of recent selling pressure and a potential retest of highs.
Also Read: Figma Stock Plunges 20% After Earnings as Bitcoin Holdings Stir Investor Debate
Beyond the Fed meeting, analysts advise keeping an eye on both on-chain and off-chain indicators. Stablecoin supply near record highs and declining exchange balances could ease short-term selling pressure, while regulatory developments and ETF flows remain critical sentiment drivers. The U.S. initial jobless claims report following the FOMC meeting may further influence bitcoin’s price trajectory.
As the market braces for the Fed’s decision, bitcoin is consolidating with a cautious outlook. Traders are watching closely for both technical breakouts and macroeconomic signals that could reignite momentum in the coming weeks.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
