After Fed Rate Cut, Bitcoin Could Rise If $117.5K Resistance Breaks as Open Interest and Outflows Signal Accumulation

• Short-term drop then recovery: BTC fell to $114.7k, closed at $116.5k on Sept 17.

• Open Interest and exchange netflows point to renewed accumulation by market participants.

• Key resistance sits at $117.5k; a break above increases the likelihood of a sustained rally (BTC ~5.6% below ATH $124k).

Bitcoin reaction to the Fed rate cut: BTC fell to $114.7k then recovered; monitor $117.5k resistance for clearer trend. Read expert signals and actionable takeaways.

What was Bitcoin’s price reaction to the Fed rate cut?

Bitcoin reaction to the Fed rate cut was a short-lived sell-off followed by a recovery: BTC fell to $114.7k (a 1.77% intraday drop) and closed at $116.5k on Sept 17. The move shows market sensitivity to the FOMC decision while derivatives metrics point to buyer accumulation.

How did Open Interest and exchange netflows explain BTC’s move?

Open Interest (OI) rose after the announcement, indicating more positions were opened and traders expected follow-through. Exchange netflows showed sizeable outflows (notably -13,262 BTC on Sept 15), signaling accumulation as coins left exchanges. CryptoQuant and XWIN Research Japan data cited higher OI and negative netflows as bullish signals.

Frequently Asked Questions

Which on-chain indicators mattered this week?

Key on-chain signals included the Spent Output Age Bands (no major STH dumping relative to earlier spikes), rising Open Interest, and pronounced exchange outflows. These metrics, reported by CryptoQuant and highlighted by XWIN Research Japan, collectively favor accumulation over distribution for now.

Bitcoin was approximately 5.6% below its all-time high of $124k while bulls tested the $117.5k barrier. The FOMC rate-cut announcement increased short-term volatility, but derivatives and netflow data showed participants positioning for a continued upside.

Analysts examining derivatives flows noted the 24-hour change in futures flipped positive after several days of contraction, a sign that traders re-entered long-biased positions. The increase in OI, alongside negative exchange netflows, supports a bullish thesis if price follows through.

Accumulation and some profit-taking

The Spent Output Age Bands did not show a mass exodus by short-term holders (155 days or less) compared with prior sell events on July 16/21 and Aug 29. Those earlier spikes correlated with larger sell pressure and the Aug 29 dip to $108.4k. Current STH movement indicates selective profit-taking rather than wholesale distribution.

Exchange netflow data showed significant outflows on Aug 29 and another large negative netflow on Sept 15. These outflows historically align with accumulation phases where liquidity is removed from exchange order books, enabling price stability or upward moves when demand resumes.

Key Takeaways

• Short-term reaction: BTC dipped to $114.7k after the FOMC announcement, then recovered to $116.5k by close.
• On-chain conviction: Rising Open Interest and negative exchange netflows suggest accumulation rather than distribution.
• Trading guidance: Wait for a decisive break above $117.5k before assuming an extended bullish trend; manage risk due to expected volatility.

Conclusion

Bitcoin showed a measured reaction to the Fed rate cut, with a brief drop to $114.7k followed by a rebound to $116.5k. On-chain metrics like Open Interest, Spent Output Age Bands, and exchange netflows point to accumulation, but the market needs a clean break above $117.5k for trend confirmation. Monitor derivatives and netflow data for the next directional clue.