Bitcoin has recently surged past the significant resistance level of $112,000, bringing excitement and volatility to the cryptocurrency market. This upward movement comes as traders anticipate further gains, particularly with the U.S. Federal Reserve expected to announce interest rate cuts.
Bitcoin’s Performance This Week
Throughout the weekend, Bitcoin experienced range-bound trading, characterized by notable price fluctuations. On Friday, a late rebound helped traders push the price higher. This rebound coincided with encouraging U.S. inflation data, leading to increased optimism among market participants.
Resistance and Short-Term Predictions
Traders observed the pivotal $112,000 level being retested. If Bitcoin manages to break and close above this resistance, analysts predict a bullish continuation toward $123,000. Some investors are closely watching the price action.
- Crypto trader Crypto Caesar noted the potential for a bullish trend should the $112,000 barrier be surpassed.
- Ted Pillows, a prominent crypto investor, mentioned that Bitcoin is currently in a short-term uptrend, having recorded four consecutive daily gains.
- Market analysts, including the X analytics account of economist Frank Fetter, indicated that breaking above $113,000 could lead to a move toward $130,000-$144,000.
Impact of Federal Reserve Rate Cuts
The upcoming U.S. Federal Reserve meeting on October 29 is crucial for traders. Analysts predict a 0.25% interest rate cut, backed by a 98% probability according to CME Group’s FedWatch Tool. Such an action is anticipated to stimulate risk assets, including cryptocurrencies.
The Kobeissi Letter highlighted the significance of this potential cut, noting that 82% of central banks globally have reduced rates recently, marking the highest share since 2020. This trend has resulted in a global monetary easing cycle.
As the cryptocurrency market responds to these developments, traders remain vigilant. The intersection of Bitcoin’s price momentum and favorable economic policies could present opportunities for significant gains in the coming week.
