The current price of Bitcoin trades at $111,742, reflecting a modest 0.5% gain within the last 24 hours. Over the past week, the leading cryptocurrency has shown resilience, climbing 5% amidst broader market movements, which have added a mere 0.48%. As October approaches its end, all eyes are on Bitcoin as it steadies itself near the $120,000 target following recent economic data.
In a notable release, the US Labor Department reported on September’s Consumer Price Index (CPI) during an ongoing government shutdown. The results were surprising, with inflation cooling more than analysts had anticipated. The year-over-year CPI rose 3.0%, slightly below the 3.1% forecast, while core CPI also posted a 3.0% rise, creating more leeway for rate cut expectations.
The implications of the CPI report have been significant, leading to a 98-99% probability, as per the CME FedWatch tool, that the Federal Reserve will announce interest rate cuts in its upcoming meeting on October 29. This anticipation has energized market confidence, particularly in risk assets like Bitcoin.
The S&P 500 reacted positively to the CPI data, achieving nearly a 1% gain that brought it close to record highs around 6,800. This buoyant sentiment has also carried over to the crypto sector, evident in Bitcoin’s persistent ability to hold its ground.
Bitcoin’s Resistance and Support Dynamics
Bitcoin has displayed a consistent rebound from its crucial $110,000 support level, demonstrating notable strength in maintaining this threshold. Analysts highlight the importance of reclaiming the $112,000-$114,000 range to confirm a sustained uptrend. However, the risk remains that a failure to break through could lead to a corrective phase.
As observed, Bitcoin’s Relative Strength Index (RSI) sits at 60, positioning it within neutral territory. Additionally, the Moving Average Convergence Divergence (MACD) indicator is displaying bullish signals, with the MACD line situated above the signal line. Continued trading around this level raises the likelihood of encountering resistance at $120,000, with a confirmed break above $112,000 potentially paving the way toward $113,000 and beyond.
However, vigilance is warranted. Should Bitcoin face rejection at current resistance, markets may experience a sharp correction towards the $108,000-$110,000 range, highlighting the critical support it has garnered.
The Broader Crypto Market Response
The broader cryptocurrency market has joined in on the upward momentum stemming from the CPI announcement. Major players like Ethereum, XRP, Binance Coin, Solana, Cardano, and Dogecoin have registered gains exceeding 3% in recent sessions.
Interestingly, Bitcoin ETFs experienced net outflows of $90.60 million over three consecutive days. In contrast, spot Bitcoin ETFs saw a significant influx with net inflows of $149.96 billion, indicating shifting investor sentiment.
On-chain data has revealed that a trader, dubbed the Trump insider whale, opened a substantial $150 million in long positions ahead of a highly publicized speech by former President Trump. This trader is notable for their credibility in predicting major price movements in Bitcoin and Ethereum.
As Bitcoin stands at $111,842, the market is in keen anticipation of the Federal Reserve’s forthcoming rate decision, which could further influence the trajectory of crypto assets.
