The market-leading cryptocurrency Bitcoin (BTC) recently attempted to stabilize around $112,000 after a sharp drop to $110,000 on Sunday, which represents a 10% decrease from its all-time high (ATH).

Before the Federal Reserve (Fed) meeting in September, market expert Doctor Profit emphasized the impending impacts and the most important technical indicators, which portray a bleak outlook for Bitcoin (BTC) and the broader market.

Will the Fed's interest rate cuts trigger a new round of market adjustments?

Doctor Profit emphasized that the current market environment is radically different from previous cycles. He believes that the Fed is expected to cut interest rates next month, which could trigger a strong pullback in both the stock market and cryptocurrencies.

He stated that the initial significant interest rate cuts usually bring uncertainty, leading to divergent opinions among investors, and he predicts this time will be no exception.

From the technical indicators of Bitcoin, its outlook seems bearish. Experts pointed out that there is a significant gap around $93,000 at the Chicago Mercantile Exchange (CME) that needs to be addressed, and currently, most liquidity is concentrated in the range of $90,000 to $95,000.

Charts indicate a potential market pullback, marked by a double top pattern and declining trading volume. Notably, Doctor Profit previously asserted that the last surge in BTC to $124,000 was primarily driven by futures market activity rather than spot market activity, reinforcing bearish sentiment.

Bitcoin Price Prediction

Market psychology plays a crucial role in this analysis. On-chain indicators and sentiment indicators show that retail investors often buy high and sell low.

The expert revealed that during the drop in Bitcoin's price from $110,000 to $98,000 between May and June this year, institutional investors mainly seized the opportunity at low prices, while retail buyers missed out.

Doctor Profit added that as prices rise, retail investors enter the market at higher prices, which could lead to turbulence as Bitcoin approaches the critical liquidation zone between $90,000 and $95,000.

In addition to Bitcoin's price trends, Doctor Profit also warned that the current market sentiment reflects a false sense of optimism, indicating that the prevailing belief that the altcoin market will continue to thrive is misguided. He warned that as enthusiasm increases, large investors may begin to sell off positions, putting retail investors at risk.

Looking ahead, he predicts that Bitcoin's price could surge to between $145,000 and $150,000, which would represent a 34% increase from current levels. The expert also expects that after a pullback in September, Ethereum (ETH) could reach prices between $7,000 and $8,000.

As of the time of writing, Bitcoin is trading at $112,560, down 6% over the past 14 days. On the other hand, Ethereum continues to be among the best performers in the market, rising 5% over the same period.