Bitcoin holding above $110K support indicates potential for further upside
Bitcoin price is hovering around $111,742, reflecting a 0.5% gain in the last 24 hours. With a 5 % increase over the past week, Bitcoin eyes the $120K mark amid ongoing market consolidation.
The broader cryptocurrency market saw a modest 0.48% rise, with altcoins like XRP, SOL, ADA, and DOGE also showing slight gains. Despite the prevailing bearish sentiment, Bitcoin holds strong above key support levels, bolstered by the growing likelihood of a Federal Reserve rate cut.
Bitcoin ETFs have recently experienced a net outflow of $90.60 million, marking three consecutive days of withdrawals. In contrast, Bitcoin itself saw a positive shift, with spot ETFs recording a net inflow of $149.96 billion.
Fed Rate Cut Expected: 98% Probability Next Week
U.S. consumer inflation in September rose less than anticipated, both on a monthly and annual basis. The data has increased expectations that the Federal Reserve will implement a rate cut next week.
According to CME’s FedWatch tool, there is now a 98% likelihood of the Fed lowering rates at its next meeting. The latest inflation numbers, along with signs of a slowing labor market, have bolstered market confidence that the central bank may also cut rates again in December. This potential rate cut could boost investor sentiment, potentially driving up demand for riskier assets like Bitcoin.
Analyst Predicts BTC Price Movement Towards $112,000
Bitcoin price has once again rebounded from its crucial $110,000 support zone, displaying resilience in the market. The cryptocurrency’s ability to hold above this level signals potential for further upward movement, but the next significant hurdle lies at the $112,000 mark.
Reclaiming the $112,000 resistance is essential for Bitcoin to initiate a fresh uptrend. This level is pivotal for driving positive momentum and reaching higher price levels. A successful break above this zone could open the path towards $113,000 and beyond.
However, if Bitcoin faces rejection at this resistance again, it could experience a sharp decline. The primary support zone to watch for a potential correction is between $108,000 and $110,000. A failure to hold this range could lead to further downward pressure.
BTC Price Targets $120K: Bullish Momentum Builds
BTC price has shown a notable recovery recently, moving above the $111,500 mark after experiencing some fluctuations over the past few days.
The Relative Strength Index (RSI) currently stands at 60, indicating that the BTC is in the neutral zone. The Moving Average Convergence Divergence (MACD) also paints a picture of bullishness with the MACD line positioned above the signal line.
If the BTC price forecast continues to hover around $111k, it will likely encounter significant resistance near $120k and beyond, which could trigger another consolidation phase. On the downside, Bitcoin has strong support at the $105,000 level, where buyers might step in to stabilize the price.
