Bitcoin price prediction: BTC extends advance near $118k after Fed rate cut

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Sholanke Dele

18.09.2025

Bitcoin price prediction: BTC extends advance near $118k after Fed rate cut — Fed decision lifts Bitcoin higher

Bitcoin price extended its advance on Thursday, lifted by the Federal Reserve’s first interest rate cut since 2024. The decision to lower borrowing costs by a quarter point provided a modest boost across risk assets, and the global crypto market cap rose 2% to $4.2 trillion. Bitcoin held firm through the announcement and pushed toward $118,000, marking its highest level in five weeks.

• Bitcoin rebounds from $114,700, sustaining rally toward $118,000 resistance zone.

• Open interest rise supports bullish case, confirming strong market participation.

• Powell’s remarks limit risk assets, but Bitcoin maintains resilient upward momentum.

The move came after Wednesday’s low near $114,700, which aligned with support at the 50 exponential moving average on the four-hour chart. That technical foundation encouraged dip buying, while a steady increase in open interest added fuel to the rally. By the late Asian session on Thursday, Bitcoin had touched a fresh high close to $118,000, surpassing the previous day’s peak and extending September’s uptrend.

Bitcoin price dynamic (Aug - Sept 2025). Source: Tradingview

The fundamental backdrop was less straightforward. Fed Chair Jerome Powell described the cut as a risk management step rather than the start of an aggressive easing cycle. He stressed that policymakers would not rush into deeper cuts, a signal that tempered broader risk sentiment. Traders who had already anticipated a rate trim found little reason to drive a sharp rally across financial markets. Still, Bitcoin managed to sustain its upward trajectory, showing relative resilience compared to other assets.

Bitcoin RSI remains bullish, leaving room for further upside extension

At the start of the European session on Thursday, Bitcoin was trading near $117,200, up 0.6% on the day. The price action confirms that buyers continue to dominate the near-term structure, keeping momentum tilted higher. The ability to close above $118,000 would further strengthen bullish conviction, potentially clearing the path toward the $120,000 threshold. This level stands as the next psychological marker for traders watching Bitcoin’s expansion through September.

Technical conditions continue to support the outlook. The daily Relative Strength Index remains in bullish territory but has not yet crossed into overbought levels, leaving room for additional upside without immediate risk of exhaustion. Combined with steady participation through rising open interest, this indicates that buyers are still confident in testing higher ground.

Overall, Bitcoin’s resilience following the Fed decision tells the strength of its trend. While Powell’s cautious remarks limited enthusiasm across traditional risk assets, Bitcoin’s ability to maintain momentum suggests that the market is pricing in not just the current cut but the possibility of easier conditions through the months ahead. The near-term challenge lies in holding above $118,000 to confirm the breakout, after which $120,000 becomes the next target for traders.

Bitcoin traded above $116,800 as FOMC decision dominated market focus. At the same time, open interest rise confirmed capital inflows supporting the rally.

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