key points:
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Bitcoin is beginning to find a local footing, with analysis highlighting several key lines in the sand.
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The RSI signal calls for continuation on the upside as the longer time frame remains in doubt.
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The effect of the Fed’s decision to cut rates is beginning to be seen in the decline in the performance of American stocks.
Bitcoin (BTC) tested key resistance on Tuesday, with traders hopeful on a move higher in BTC price.
Bitcoin price next hits new high
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin trading around $114,000.
Following an impressive weekly close, BTC/USD gained ground during Monday’s Wall Street trading session.
Now, trader and analyst Rect Capital had two important support levels for bulls to reclaim: the 21-week exponential moving average (EMA) at $111,200 and the weekly close at $114,500.
“Bitcoin has had a successful weekly close above both the 21-week EMA (green) and $114.5k (black),” he told X followers along with a chart.
“Both $114.5k and the EMA could be retested to confirm retesting support. $BTC could achieve this via a volatile retest of $114.5k, which would see a move into the EMA below.”
Rect Capital later confirmed that the required re-examination is now “in progress”.
“$BTC bounced back from its $113,500 support zone,” crypto investor and entrepreneur Ted Pillowz said that day.
“As long as Bitcoin holds this, we are going up. If BTC loses this level, expect a correction to the $110,000 level.”
Furthering the cause of the bulls was a hidden bullish divergence on the lower time frame Relative Strength Index (RSI).
The hourly chart shows that the RSI is at a lower low, while the price is at a potentially higher low – an early sign that the short-term bullish trend could continue.
As Cointelegraph reported, the higher-time frame RSI indicates trend exhaustion, with the indicator making consecutive lower highs when price makes records.
Stock futures halted gains as Fed meeting approached
Stock futures showed signs of tension ahead of the week’s key macroeconomic event, the US Federal Reserve’s decision on interest rate changes.
Connected: BTC price eyes monthly close record: 5 things to know in Bitcoin this week
S&P 500 futures cooled ahead of the Wall Street open, with risk assets typically seen under pressure ahead of Fed rate meetings.
Pillows also noted that BTC/USD often hit local lows on Tuesday, leaving the door open for a continued retest of support.
$BTC Typically the peak is on Monday and the trough is on Tuesday.
This has been happening for the last few months.
Do you think this could happen again? pic.twitter.com/RsnRB4eZ5f
– Ted (@TedPillows) 27 October 2025
However, keeping the bigger picture in mind, trading resource Mosaic Asset Company had no reason to doubt a risk-asset bull case.
“Evidence of economic growth is boosting the earnings outlook, while loose fiscal conditions are a catalyst for more growth,” it wrote in the latest edition of its regular newsletter, “The Market Mosaic,” on Sunday.
“A strong economic backdrop and the possibility of the Fed cutting interest rates amid already loose conditions is more fuel for the stock market rally.”
This article does not constitute investment advice or recommendations. Every investing and trading move involves risk, and readers should do their own research when making decisions.
