Analyst warns September Fed rate cut could lead to a correction across crypto and equities due to rising uncertainty.
Bitcoin’s $92K CME gap identified as a major liquidity pool, with weakening volume suggesting pressure toward lower zones.
Retail investors entered above $110K, while larger players accumulated lower, increasing risk of a flush out before recovery.
Bitcoin is nearing a decisive phase ahead of the September Federal Reserve meeting, with analysts highlighting potential risks for both crypto and stocks. Market expert Doctor Profit has issued a detailed breakdown of current trends, pointing to bearish signals that could drive a correction in the coming weeks.
The report connects technical factors, liquidity zones, and market psychology, noting that a significant pullback may occur as retail traders continue entering at higher levels. With Bitcoin trading between $112,000 support and $124,000 resistance, the setup remains critical as macroeconomic policy shifts combine with structural market pressures.
Rate Cuts Raise Concerns Over Market Stability
According to the analyst, the upcoming September 17 FOMC meeting could deliver the first significant rate cut since 2020. Unlike last year’s September cut, which had little impact, this one is described as more impactful.
The report stresses that major corrections usually follow only after a meaningful cut, not minor adjustments. This distinction, the analyst noted, could create uncertainty across markets, with both crypto and equities likely affected. The rate decision is seen as a key driver of volatility, coming at a moment when bullish sentiment appears artificially maintained.
Technical Factors and Toward Liquidity Zones
From a technical perspective, the analyst noted the importance of the CME gap near $92,000, labeled as a “massive liquidity pool.” Historical trading behavior shows Bitcoin often revisits such gaps, increasing the probability of a move lower.
BTC/USDT Perpetual Contract 1-day price chart, Source: Doctor Profit on X
Current resistance around $124,000 aligns with the analyst’s defined “short area,” while repeated bounces at $112,000 mark a crucial support level. A breakdown of that support could accelerate selling pressure, aligning price action with liquidity pools below.
There is weakening volume and several bearish divergences, alongside futures led rallies rather than strong spot demand.
Retail Behavior and Market Outlook
The report also focused on retail trading activity, noting patterns where smaller investors often bought near tops and sold during declines. Data from wallet flows and sentiment indicators show larger investors accumulated between $98,000 and $110,000, while retail entered heavily above $110,000.
This imbalance, according to the analyst, creates pressure for markets to revisit lower zones to shake out weaker hands. He added that liquidity has been steadily offloaded while inflows into large institutional ETFs remain subdued. The strategy outlined includes gradually shifting profits from spot into short positions, with an eye on potential post September opportunities once corrections unfold.
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