Bitcoin (BTC) surged past its volume-weighted average price (VWAP), signaling a promising rebound following recent lows below $75,000 in April. As the cryptocurrency market gains momentum, Bitcoin appears poised for a significant move, with traders targeting $118,000 in the near term. The broader financial markets are also contributing to this optimism, with stocks reaching new all-time highs following the Federal Reserve’s interest rate cut.

BTC/USD one-hour chart. Source: TradingView

Bitcoin’s breakthrough sparks hopes for new records

Data from Cointelegraph Markets Pro and TradingView indicate Bitcoin has maintained its daily gains above key resistance levels, reinforcing bullish momentum. The recent US trading session saw both the S&P 500 and Nasdaq reach new highs after the Fed’s rate cut, which was the first since early 2025.

BTC/USD vs. S&P 500 one-day chart. Source: TradingView

Analysts suggest that such rate cuts when markets are at record highs often lead to sustained gains in risk assets. The Kobeissi Letter, a prominent market analysis resource, noted that historically, the S&P 500 has seen an average increase of 14% in the 12 months following rate reductions when the index is near all-time highs.

“When the Fed cuts rates within 2% of all-time highs, the S&P 500 has historically risen an average of +14% over the next year.”

XAU/USD one-hour chart. Source: TradingView

Gold also experienced increased volatility after hitting its own record levels, with traders eyeing the $3,700 mark. Meanwhile, Bitcoin bulls are working to establish support around $117,000 as they contend with overcoming the final significant resistance zone before entering a phase of price discovery.

$BTC – #Bitcoin is looking really interesting right now.

It’s trying to reclaim the ~$117K level.

Once we gain this level the way to $120K is open in my opinion.

However: Last time we rejected this level and came all the way back to the light blue zone. pic.twitter.com/zHxQzst0V4

— Crypto Caesar (@CryptoCaesarTA) September 18, 2025

Market analyst Caleb Franzen observed a bullish pattern forming in BTC/USD, reminiscent of a similar break above the VWAP from May. Historically, breaking above the anchored VWAP from previous all-time highs has often been a precursor to upward momentum, suggesting positive prospects ahead.

BTC/USD one-day chart with VWAP data. Source: Caleb Franzen/X

Cautions ahead amid building liquidity

Despite optimism, analysts warn of potential volatility driven by increasing order-book liquidity. Trading resource Material Indicators flagged that while the macro environment remains bullish, the current liquidity buildup might trigger short-term price swings, resembling an “exit pump” rather than sustained accumulation.

The recent thickening of order book liquidity at levels around $116,500 and $119,000 underscores the possibility of volatile price action, as traders react to the growing volume around key resistance points.

This heightened liquidity environment signals new risk and opportunity in the crypto markets, emphasizing the need for careful monitoring as Bitcoin approaches crucial resistance levels.

This analysis does not constitute investment advice. As always, traders should conduct thorough research and consider their risk tolerance before participating in volatile crypto markets.