Bitcoin Price Explodes: $112K Breakout Ignites Bullish Hopes as Fed Rate Cut Looms

The cryptocurrency market is buzzing. Bitcoin price recently began a significant breakout, challenging the $112,000 mark. This surge arrives just as the Federal Reserve’s upcoming meeting sparks immense speculation. Investors are closely watching the potential for a crucial Fed rate cut, a move that could profoundly reshape the broader financial landscape.

BTC Breakout Ignites Market Optimism

Bitcoin (BTC) price action has decisively favored bulls. As the weekly close approached, BTC neared $113,000. This movement positions the leading cryptocurrency for a potentially explosive week. Data from Crypto News Insights Markets Pro and TradingView, for instance, confirms this bullish momentum. The weekend initially saw a range-bound BTC price action. However, a late Friday rebound significantly helped bulls. This push moved Bitcoin to a higher level within its weekly range. Furthermore, pleasing U.S. inflation data fueled this positive shift. Now, market participants anticipate fresh local highs. The weekly close often brings increased volatility, making this BTC breakout particularly noteworthy. Consequently, optimism pervades the market.

Traders Target Key Resistance Levels for Bitcoin Price

Experienced traders are closely monitoring crucial resistance levels. Trader Crypto Tony, for instance, held a long position above $108,200. He specifically targeted the $113,000 highs next. This sentiment reflects broader market expectations. Crypto Caesar, another prominent analyst, observed the $112,000 resistance level undergoing a retest. He suggested a clean break and close above this point. Such a move, he indicated, could confirm a bullish continuation. His target, moreover, extends towards $123,000.

[img src=”btc-usdt-perpetual-contract-one-day-chart-source-crypto-caesar-x.png” alt=”BTC/USDT perpetual contract one-day chart. Source: Crypto Caesar/X”]
BTC/USDT perpetual contract one-day chart. Source: Crypto Caesar/X

Crypto investor Ted Pillows shared similar insights. He noted Bitcoin’s short-term uptrend. Four consecutive green daily candles indicate consistent accumulation. Someone is actively “TWAPing” Bitcoin here, he stated to X followers. Pillows continues to eye the $112,000-$114,000 zone. Reclaiming this area, he believes, could propel BTC above $118,000 very soon. These targets, therefore, highlight the current bullish outlook for the Bitcoin price.

Fed Rate Cut Odds Boost Crypto Market Confidence

Looking ahead, the upcoming week presents another pivotal event. This concerns both crypto and risk-asset investors. The U.S. Federal Reserve recently processed cooler-than-expected inflation numbers. Consequently, it is widely expected to cut interest rates. Analysts predict a 0.25% reduction at its October 29 meeting. Data from CME Group’s FedWatch Tool confirms this expectation. The odds of this outcome currently exceed 98%.

[img src=”fed-target-rate-probabilities-for-october-fomc-meeting-screenshot-source-cme-group.png” alt=”Fed target rate probabilities for October FOMC meeting (screenshot). Source: CME Group”]
Fed target rate probabilities for October FOMC meeting (screenshot). Source: CME Group

A Fed rate cut typically benefits risk assets. Cryptocurrencies, including Bitcoin, fall into this category. Lower interest rates make traditional investments less attractive. This encourages investors to seek higher returns elsewhere. Therefore, a rate cut could inject significant capital into the crypto market. This scenario, undoubtedly, would further fuel the current bullish sentiment.

Global Interest Rates Pivot Towards Easing

The Federal Reserve’s potential move is not isolated. Trading resource The Kobeissi Letter provided crucial context. They highlighted a worldwide rates “pivot” by central banks. Currently, 82% of world central banks have cut rates. This occurred over the last six months. Such a share has not been seen since 2020. Historically, central banks have slashed rates at this pace only during recessions. This century, such rapid easing is rare. “Global monetary easing is in full swing,” they wrote on X.

[img src=”global-central-bank-interest-rate-data-source-the-kobeissi-letter-x.png” alt=”Global central bank interest-rate data. Source: The Kobeissi Letter/X”]
Global central bank interest-rate data. Source: The Kobeissi Letter/X

This global trend of lower interest rates significantly impacts asset valuations. When borrowing costs decrease, businesses and consumers spend more. This stimulates economic activity. Moreover, it can drive up asset prices, including those of cryptocurrencies. This macro environment, therefore, provides a strong tailwind for Bitcoin’s current rally.

Analyzing Bitcoin’s Short-Term Holder Cost Basis

Further analysis supports the bullish outlook. The X analytics account “Frank A. Fetter” is closely watching for a break of $113,000. This level holds significant importance. It represents the aggregate cost basis for Bitcoin’s short-term holders. These entities hold Bitcoin for up to six months. Reclaiming this crucial level could trigger further upward movement. “If BTC can reclaim the short-term holder cost basis at $113k, a move into the blue band of $130k – $144k feels right,” they stated. This analysis, consequently, provides clear targets. It outlines potential resistance zones for the next phase of the Bitcoin price rally.

[img src=”bitcoin-sth-cost-basis-source-frank-a-fetter-x.png” alt=”Bitcoin STH cost basis. Source: Frank A. Fetter/X”]
Bitcoin STH cost basis. Source: Frank A. Fetter/X

What’s Next for the Crypto Market?

The confluence of factors creates a compelling narrative. A confirmed BTC breakout above key resistance levels looks likely. The overwhelming odds of a Fed rate cut provide macro support. Furthermore, global central banks are easing monetary policy. These elements suggest a robust period for risk assets. Investors should monitor the Federal Reserve’s official announcement. Any deviation from the expected 0.25% cut could introduce volatility. However, the current sentiment remains overwhelmingly positive. The market is keenly anticipating Bitcoin’s next move. Many expect it to challenge higher price targets.

Conclusion:

Bitcoin stands at a critical juncture. The recent surge past $112,000 signals strong bullish momentum. This momentum is further amplified by the high probability of a Federal Reserve interest rates cut. As global monetary easing gathers pace, the conditions for a sustained rally in the crypto market appear increasingly favorable. Traders and investors are now focused on confirming new local highs. The coming days will be pivotal for Bitcoin’s trajectory.

Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk. Readers should conduct their own research when making a decision.