Bitcoin Consolidates Above $115K Ahead of Federal Reserve Rate Decision
On Monday, Bitcoin is trading above $115,000, up more than 3% in the last 24 hours. This is because the main cryptocurrency is holding
Quick overview
- Bitcoin is currently trading above $115,000, showing a 3% increase in the last 24 hours as it holds steady ahead of the Federal Reserve's interest rate decision.
- Technical analysts suggest that a strong closure above $115,000 could initiate a rally towards $120,000 to $122,000, with critical resistance at $112,000.
- On-chain data indicates a significant drop in Bitcoin reserves on exchanges, suggesting that investors are moving assets to cold storage in anticipation of price increases.
- Market predictions for Bitcoin's price vary widely, with conservative estimates between $120,000 and $130,000, while some analysts project prices could reach $500,000 by 2026.
On Monday, Bitcoin BTC/USD is trading above $115,000, up more than 3% in the last 24 hours. This is because the main cryptocurrency is holding steady in a key technical range ahead of the Federal Reserve’s highly anticipated interest rate decision on October 29.
BTC/USD Technical Analysis: Bulls Eye $112K-$115K Reclaim for Continuation Rally
Bitcoin’s price movement shows a strong setup as BTC stays between two important moving averages. The 100-day moving average at $115,000 is a level of resistance right now, and the 200-day moving average at $109,000 is a level of support. Technical analysts say that a strong closure over the $115,000 level might start a rally toward $120,000 to $122,000.
Trader Crypto Caesar said that the $112,000 mark is a critical resistance point that is being tested again. He said, “A clean break and close above it could confirm a bullish continuation toward $123K,” stressing how important it is for momentum to stay above this key zone.
Ted Pillows, a crypto investor, saw four green daily candles in a row, which means that purchasing pressure has been steady over time-weighted average price (TWAP) techniques. “I’m still looking at a range of $112,000 to $114,000. If it reclaims that level, BTC could go above $118,000 very soon,” Pillows said, stressing the positive potential in the short term.
If Bitcoin goes back up to the short-term holder cost base of $113,000, more aggressive targets will come up. If BTC can break over this level, analytics say it might rise to the $130,000-$144,000 zone, which is the total cost basis for people who have held Bitcoin for up to six months.
Federal Reserve Rate Cut: 98% Probability Boosts Risk Assets
The next meeting of the Federal Reserve will have big effects for Bitcoin and other risky assets. The CME Group’s FedWatch Tool shows that there is more than a 98% chance that the market will decrease interest rates by 0.25% at the time of writing.
This planned change comes after inflation data that was lower than expected and is part of a synchronized worldwide cycle of lowering monetary policy. Resource for trading The Kobeissi Letter said that 82% of the world’s central banks had lowered rates in the last six months. This is the greatest percentage since 2020. “The analysis said that central banks have cut rates at a rate that hasn’t been seen since the last recession.” “Global monetary easing is in full swing.”
Lower interest rates usually help Bitcoin by making it cheaper to keep assets that don’t pay interest and making financial markets more liquid. This might lead to more money going into alternative investments like cryptocurrency.
On-Chain Signals: Binance BTC Reserves Hit July Lows in Bullish Development
On-chain data shows that a lot of Bitcoin is leaving exchanges, which supports the technical view. Amr Taha, a crypto analyst, pointed out that Binance’s Bitcoin reserves had dropped to about 610,000 BTC, which is the lowest level seen in over a year and the last time this happened was in July.
This “extremely aggressive” drop in exchange reserves shows that investors are putting their assets to cold storage, which usually means they expect prices to go up in the long run. The market is more likely to experience supply shocks when there is less supply accessible on exchanges. Even little increases in demand can cause big price swings.
Institutional accumulation, whale behavior, and steady demand from spot Bitcoin ETFs, which keep buying up available supply from the market, are the main reasons why reserves are going down.
Bitcoin Price Predictions: Analysts Divided on Medium-Term Trajectory
Market analysts still can’t agree on where Bitcoin is going, and their predictions are all over the place. Conservative predictions say that the price will be between $120,000 and $130,000 in the near future, while more optimistic estimates say it will be $200,000 by the end of 2025. Some analysts have raised their forecasts to $500,000 by 2026, but industry experts are not sure about these ambitious goals.
Bitcoin’s next big move will probably be determined by the trading range between $109,000 support and $115,000 resistance. A significant break above $115,000 might confirm the bullish continuation pattern, but if the price doesn’t hold $109,000, it could lead to a deeper decline.
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