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Bitcoin Breaks $112K as Fed Rate Cut Boosts Market Optimism

Bitcoin breaks $112,000 resistance amid rising volatility and anticipations of Fed rate cut

  • Bitcoin pushed past the $112,000 resistance level near the weekly close, showing increased volatility.
  • Traders are targeting new local highs, with expectations for Bitcoin to reach between $113,000 and $144,000.
  • Short-term Bitcoin holders have an estimated cost basis around $113,000, which could act as a key support level.
  • The U.S. Federal Reserve is expected to cut interest rates by 0.25% at its October 29 meeting, with more than 98% probability.
  • Most global central banks have reduced rates recently, marking a significant phase of worldwide monetary easing.

Bitcoin approached the $112,000 resistance level at the close of trading last Sunday, as market participants anticipated the potential for new highs. This increase in trading activity followed a rebound late Friday, influenced by positive inflation data from the United States.

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According to data from Cointelegraph Markets Pro and TradingView, Bitcoin Price remained mostly range-bound during the weekend before gaining momentum toward the upper end of its weekly range. Several traders noted heightened volatility typical of the weekly close period.

Market observers highlighted the $112,000 resistance as a critical level. One trader wrote that a “clean break and close above it could confirm a bullish continuation toward $123K.” Another noted that Bitcoin is in a short-term uptrend marked by four consecutive green daily candles, suggesting steady buying interest. This trader was eyeing a zone between $112,000 and $114,000, with potential to push above $118,000 soon.

Further analysis pointed out that $113,000 represents the cost basis for Bitcoin holders with positions held for up to six months. Reclaiming this level could pave the way for gains into the $130,000 to $144,000 range, aligning with the price targets set by some market participants.

Looking ahead, attention turns to the U.S. Federal Reserve’s scheduled meeting on October 29. The Fed is widely expected to reduce interest rates by 0.25%, with the probability of this move above 98%, as indicated by the CME Group’s FedWatch Tool. This expected rate cut is part of a broader global trend: 82% of central banks worldwide have lowered rates over the past six months, a pace only seen during recessions this century.

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This phase of monetary easing among central banks signals increased support for risk assets, including cryptocurrencies, amid shifting economic conditions.

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