Bitcoin demonstrated notable upward momentum heading into the close of the week, breaking through the critical $112,000 resistance level. Market participants remain attentive, anticipating the development of new short-term highs as the cryptocurrency continues its recovery phase.
Throughout the weekend, Bitcoin’s price action experienced relatively stable consolidation within a defined range, as observed in recent charts from Cointelegraph Markets Pro and TradingView. However, a late rally on Friday pushed the value higher, aided in part by encouraging inflation data from the United States.
Traders view the weekly closing period as a time of increased volatility, which often sets the stage for significant moves. Crypto Caesar, an active trader on social platform X, highlighted the retesting of the $112,000 barrier, noting that a decisive break and close above this figure could signal further bullish momentum with targets around $123,000.
Similarly, investor and entrepreneur Ted Pillows reported a short-term uptrend characterized by four consecutive days of gains. He pointed out consistent dollar-cost averaging into Bitcoin, suggesting that reclaiming the $112,000 to $114,000 zone could potentially propel prices past $118,000 in the near term.
Analysts monitoring Bitcoin’s short-term holder cost basis, which currently sits near $113,000, indicated that surpassing this level could pave the way for a larger rally. The address labeled after economist Frank Fetter emphasized that reclaiming this threshold might see Bitcoin advance into a range between $130,000 and $144,000, reflecting the average price paid by investors holding Bitcoin for up to six months.
Central to investor sentiment is the upcoming United States Federal Reserve meeting, scheduled for October 29. Expectations have strongly favored a 0.25% rate cut, following incoming inflation figures that were softer than anticipated. According to CME Group’s FedWatch Tool, the likelihood of this outcome exceeds 98%.
The prospect of a rate reduction aligns with a broader global trend of monetary easing. The Kobeissi Letter, a trading commentary resource, noted that approximately 82% of central banks worldwide have reduced interest rates over the past six months, marking the highest proportion since 2020. This level of coordinated rate cuts is reminiscent of historical periods during economic recessions, underscoring a significant pivot in global monetary policy.
This widespread easing environment supports increased risk appetite among investors, which benefits assets such as Bitcoin. However, it is important to consider that markets remain susceptible to volatility, and each investment carries inherent risks.
This article is for informational purposes only and does not constitute financial advice. Investors should perform their own due diligence before making investment decisions.
