Bitcoin traders anticipate a potential retest of $120,000 following the Federal Reserve's recent rate cut, according to analysis from Bitbank. The consensus among CME FedWatch traders reveals that 92% expect another 25-basis point cut in October. Despite this bullish sentiment, current Bitcoin options activity indicates a trend of traders capping potential gains between $125,000 and $150,000, opting to sell premiums rather than aggressively bet on upward price movement. Analyst Yuya Hasegawa notes that while the market responds positively to the Fed's stance, concerns remain regarding the stronger dollar and rising bond yields, which could temper immediate bullish reactions. Traders are advised to pay attention to Federal Reserve communications and upcoming consumer spending data for further insights. As the cryptocurrency market overall remains resilient, the immediate impact of the rate cut on Bitcoin's price trend is still unfolding.

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