Bitcoin continued its weekend volatility as the world’s largest cryptocurrency tested the $112,000 resistance level heading into Sunday’s weekly close.
Data from Cointelegraph Markets Pro and TradingView showed BTC trading within a relatively tight range throughout the weekend, with Friday’s rebound setting the stage for renewed bullish momentum.
The rebound came after softer-than-expected U.S. inflation data, which fueled optimism that the Federal Reserve could deliver its first interest rate cut in over a year.
Traders were watching closely for signs of a breakout.
Crypto analyst Crypto Caesar noted that Bitcoin was retesting the $112,000 resistance, writing, “A CLEAN break and close above it could confirm a bullish continuation toward $123K.”
Investor Ted Pillows echoed similar optimism, saying, “$BTC seems to be in a short-term uptrend. 4 consecutive green daily candles, which means someone is consistently TWAPing Bitcoin here. I’m still eyeing a $112,000-$114,000 zone, as a reclaim could push BTC above $118,000 really soon.”
Others were watching for a more decisive move. The analytics account named after economist Frank Fetter pointed to $113,000 as the current cost basis for short-term Bitcoin holders.
“If BTC can reclaim the short-term holder cost basis at $113k, a move into the blue band of $130k – $144k feels right,” the account wrote.
Fed Rate-Cut Prospects Fuel Market Momentum
Investor sentiment has also been lifted by expectations that the Federal Reserve will cut interest rates at its upcoming meeting on October 29.
According to the CME Group’s FedWatch Tool, there was more than a 98% probability of a 0.25% rate cut at the time of writing.
The Kobeissi Letter noted that global monetary easing was already well underway, stating, “So far, 82% of world central banks have cut rates over the last 6 months, the highest share since 2020. This century, central banks have slashed rates at a pace only seen during recessions.”
Bitcoin’s next move will likely depend on whether it can close above key resistance and capitalize on broader risk-on sentiment as rate cuts loom.
