Despite a weekly gain of around 4%, Bitcoin faces resistance near $116,000 and shows signs of selling pressure, raising concerns about a potential market top.

Technical traders are monitoring Bitcoin's ability to close above $116,000 and reclaim $114,000 as support, with failure risking a sideways range until clearer Fed guidance emerges.

The upcoming Fed rate cut, expected on September 17, is viewed as a sign of underlying economic challenges, with historical data suggesting such cuts can lead to short-term declines in risk assets.

Peter Schiff warns that Bitcoin may be reaching a peak and potentially reversing or stagnating ahead of the Federal Reserve's expected 25 basis point rate cut on September 17, 2025, citing resistance levels and signs of market fatigue.

While futures trading shows slight inflows into Bitcoin derivatives before the Fed meeting, spot market flows remain negative, indicating short-term selling pressure.

Economists note that rate cuts typically follow economic turmoil and can negatively impact stocks, but cryptocurrencies often bottom out before equities, adding complexity to market reactions.

Despite Schiff's bearish outlook, some analysts highlight ongoing buying interest from large investors and corporate treasuries, suggesting persistent demand for Bitcoin.

Schiff emphasizes that Bitcoin's failure to break through resistance and reach new highs signals increased risks, contrasting with the strength of traditional assets during economic uncertainty.

Market sentiment remains mixed: some believe Bitcoin's long-term demand could still push prices higher, even as short-term signals point to resistance and potential weakness.

Market participants are cautious ahead of the Fed decision, watching whether Bitcoin can hold support or break resistance to determine its near-term trend.

Traditional safe-haven assets like gold and silver are rallying and outperforming Bitcoin, which struggles to capitalize on market optimism and remains below key resistance levels.

Schiff points out that Bitcoin remains 15% below its 2021 peak when priced in gold, failing to benefit from the rally in traditional safe-havens like gold and silver.