Bitcoin Price Action and Key Support Levels
Bitcoin (BTC) tested key resistance on Tuesday, with traders observing potential for BTC price upside. Data from Cointelegraph Markets Pro and TradingView indicated Bitcoin trading around $114,000 after an impressive weekly close. The cryptocurrency consolidated gains during Monday’s Wall Street trading session.
Analyst Rekt Capital identified two crucial support levels for bulls to reclaim: the 21-week exponential moving average (EMA) at $111,200 and the $114,500 weekly close. Rekt Capital stated on X that Bitcoin had successfully closed the week above both the 21-week EMA and $114.5k, suggesting these levels could be retested to confirm a reclaim to support. He noted that BTC could achieve this through a volatile retest of $114.5k, with a wick into the EMA below.
Rekt Capital later confirmed that the required retest was in progress. Crypto investor and entrepreneur Ted Pillows also commented on the day, noting that Bitcoin bounced back from its $113,500 support zone. He added that as long as Bitcoin holds this level, further upside is expected, but a loss could lead to a correction towards the $110,000 level.
Technical Indicators and Market Sentiment
Further supporting the bullish sentiment was a hidden bullish divergence observed on the lower-time frame relative strength index (RSI). The hourly chart indicated that while the RSI was making a lower low, the price was potentially forming a higher low, signaling an early continuation of a short-term uptrend.
However, as previously reported, higher-time frame RSI data suggests trend exhaustion. This is evidenced by the indicator making successive lower highs while the price has been setting new records. The current price action suggests a potential short-term uptrend continuation based on lower-time frame indicators.
Impact of Federal Reserve Meeting on Markets
Ahead of the US Federal Reserve's decision on interest rates, stock futures showed signs of strain. The S&P 500 futures cooled prior to the Wall Street open, a typical occurrence where risk assets tend to face pressure leading up to Fed rate meetings.
$BTC usually peaks on Monday and bottoms on Tuesday.
— Ted (@TedPillows) October 27, 2025
This has been happening for a few months now.
Do you think it could happen again? pic.twitter.com/RsnRB4eZ5f
Ted Pillows also observed that BTC/USD often establishes a local low on Tuesdays, suggesting that the support retest could continue. Despite the immediate pressure on stock futures, the broader outlook for risk assets remained positive according to trading resource Mosaic Asset Company. In their newsletter, "The Market Mosaic," they noted that evidence of economic growth is boosting the earnings outlook, and loose financial conditions are acting as a catalyst for further growth.
The prospect of the Fed cutting interest rates into a strong economic backdrop and already loose conditions is more fuel for the stock market rally.
