Bitcoin price prediction: BTC recovery attempt builds after second Fed rate cut of 2025

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Sholanke Dele

30.10.2025

Bitcoin price prediction: BTC recovery attempt builds after second Fed rate cut of 2025 — Bitcoin recovers amid delivered rate cut

Bitcoin price traded slightly higher on Thursday after an early rebound from a fresh seven-day low.

The cryptocurrency had extended its losses in the early London session to touch $108,000 before demand from buyers lifted prices back above $110,000 in the European session. At the time of writing, Bitcoin trades near $110,500, showing mild recovery after three consecutive bearish closes earlier in the week.

- Bitcoin rebounds above $110,000 after Fed’s 25 bps cut sparks mild market optimism.

- Long-to-short ratio above 2.0 signals traders anticipating stronger near-term recovery momentum.

- Resistance cluster near $112,000 holds key for BTC’s next breakout or renewed decline.

The week’s downward pressure began before the Federal Reserve’s policy decision on Wednesday. The Fed cut its benchmark interest rate by 25 basis points to a range between 3.75% and 4%, marking its second rate reduction this year. While the decision was broadly expected, Chair Jerome Powell’s accompanying remarks were less dovish than investors had hoped. As the statement hit the wires, Bitcoin slipped to $109,000 before recovering slightly to close the session near $110,000. The muted reaction confirmed that the rate cut had already been priced into market expectations.

Bitcoin price dynamic (Fed - Oct 2025). Source: Tradingview

Despite the rate reduction, bearish momentum has persisted across the crypto market this week. Bitcoin’s week-to-date loss currently stands at 4%, reflecting traders’ uncertainty over whether liquidity conditions will improve enough to reignite risk appetite. Still, underlying positioning suggests optimism is slowly returning. On-chain data shows that Bitcoin’s long-to-short ratio has climbed above 2.0, and aggregate open interest has risen from $34 billion to $35 billion, implying traders are increasing leveraged exposure in anticipation of a possible rebound.

Bitcoin traders watch $112,000 resistance cluster amid potential reversal

Technically, the 4-hour and daily RSI readings remain in bearish territory and are not yet oversold, suggesting that the correction may not be fully exhausted. For a sustained recovery, Bitcoin must break above the cluster of resistance formed by the 20, 50, and 100 EMAs on the 4-hour chart, all converging near $112,000. A breakout above this level could shift short-term sentiment and re-establish bullish control.

In contrast, if momentum weakens again, the next downside target sits at last week’s low of $106,600. On the upside, a successful rebound that clears resistance could drive the price back toward $116,000, and potentially $118,000 if follow-through buying intensifies. The next sessions will likely determine whether Bitcoin transitions from a short-term correction into a renewed bullish phase following the Fed’s latest policy shift.

We discussed Bitcoin consolidating near $113,000 as RSI and EMAs reflected a balance of market forces. Fear and Greed Index dropped to 39, signalling weakening confidence ahead of the FOMC decision.

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