Bitcoin (BTC USD) has shown positive movement today, trading above the $111,000 mark, reigniting price predictions of $120k. The cryptocurrency has remained relatively stable, while the broader crypto market has experienced a slight recovery.
Earlier this month, Bitcoin experienced a sharp decline, losing support at $120k around October 10th. Since then, BTC price has struggled to regain that level, with ongoing US-China trade war tensions dampening investor sentiment. The absence of positive catalysts has also contributed to market confidence issues, further impacting the broader market.
However, recent developments suggest that BTC may be poised for a significant recovery. The latest US CPI data indicated that inflation cooled last month, reinforcing expectations of a potential Federal Reserve rate cut as early as next week. This development is expected to boost market confidence. Lower policy rates typically make riskier assets like Bitcoin and altcoins more attractive to traders. Furthermore, the anticipated increase in liquidity due to potential Fed rate cuts hints at a robust Bitcoin price recovery in the near future.
Bitcoin (BTC USD) Price Nears $112k, Rally to Sustain?
The Bitcoin USD price surged by more than 0.8% in the last 24 hours, trading close to the $112,000 mark. Despite this price increase, the cryptocurrency's trading volume presents a less optimistic picture, having fallen by over 31% to $36 billion.
Nevertheless, this recent price surge has helped offset recent losses, as indicated by a weekly gain of over 4.4%. Over the past 30 days, Bitcoin has seen a modest price increase of nearly 0.4%. Market analysts attribute this recent recovery to the latest US CPI inflation data, which has eased market concerns.
The September US CPI data revealed that inflation stood at 3%, which was lower than the market's expectation of 3.1%. Additionally, the Core CPI, excluding food and energy prices, was reported at 3% on a year-over-year basis and 0.2% on a monthly basis. Both figures came in below the expected 3.1% and 0.3%, respectively.
Bitcoin Price Prediction: Can it Hit $120k Amid Fed Rate Cut Bets?
With inflation data cooling, market participants are anticipating a sustained rally not only in Bitcoin USD but also in altcoins. This sentiment has strengthened expectations of a likely Fed rate cut next week. According to the CME FedWatch Tool, the probability of a Fed rate cut on October 29th now stands at 98%. This anticipated event is expected to stimulate market liquidity, potentially triggering a significant rally in Bitcoin's price.
Analyst Michael van de Poppe commented that a Bitcoin price breakout is anticipated as early as next week. He emphasized that maintaining the $111,900 support level is crucial for BTC price to continue its upward trajectory.
The next significant targets for Bitcoin are projected to be $119,504 and $123,288. Market experts remain optimistic about a bullish trend for the asset in the final quarter of the year.
Echoing this sentiment, expert Rekt Capital noted that BTC USD has major support at $109,433 and resistance at $114,424.
Breaking through this resistance level could trigger a substantial rally for Bitcoin, potentially pushing its price to $123k.