Bitcoin Price Consolidates as Santiment Warns of Overheating from Fed Rate Cut Hype

The Bitcoin price has slid by a fraction of a percentage in the last 24 hours, to trade at $114,097.42, on an 11.6% decrease in the daily trading volume, to $65.45 billion.

Bitcoin Price Dips as Santiment Warns of Crypto Overheating

The BTC price dip comes as Santiment warns that a surge in social media chatter about a possible September Fed rate cut could signal overheating in the crypto market. Mentions of “Fed,” “rate,” “cut,” and “Powell” have climbed to their highest level in 11 months, a pattern Santiment says often points to excessive optimism and a potential local top.

Optimism grew after Fed Chair Jerome Powell suggested at Jackson Hole that a September cut is on the table, with the CME FedWatch Tool showing 75% of traders now expect it. Analysts remain divided on the impact. Trader Ash Crypto predicts trillions could enter the market and drive altcoins 10x–50x higher if cuts begin.

In contrast, Markus Thielen of 10x Research cautions that Bitcoin could face short-term pressure from recession fears before longer-term gains appear. Economist Timothy Peterson also warned that if the Fed delays cuts into 2025, the crypto market could face broader headwinds.

Bitcoin Price Poised for $150K as Chart Shows Bullish Pattern

Bitcoin is showing signs of strength after months of sideways movement, with analysts pointing to a chart pattern that could signal a big rally ahead. The leading cryptocurrency is currently trading around $114,700, and technical indicators suggest it could climb as high as $150,000 if momentum builds.

The daily chart highlights a “rounded bottom” formation that started earlier this year. This pattern usually means the market is shifting from a bearish phase into a new bullish cycle. After bouncing from strong support near $100,000, Bitcoin broke above the neckline of this pattern and moved into a consolidation phase.

Since then, the price has been ranging between $110,000 and $125,000, waiting for a breakout. The current range is considered the “entry point” or “buying zone,” while the $150,000 level has been marked as the “take profit” target.

Bitcoin Consolidation Sets Stage for Potential Breakout

This creates what analysts call a “reward zone,” offering potential upside if the price manages to escape the current consolidation.

The Relative Strength Index (RSI), a momentum indicator, is at 46.71. This neutral level suggests Bitcoin is not overbought or oversold, leaving room for further gains. A clean push above $120,000 would give bulls more confidence and could set the stage for the next leg higher.

However, analysts also warn that the journey may not be smooth. If Bitcoin falls below $110,000 support, it could signal more weakness before any strong rally resumes. Extended sideways action is also possible, as traders wait for clearer signals from the global economy.

If the rounded bottom pattern plays out, Bitcoin could be at the start of a new upward cycle, with $150,000 as the next big milestone.