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    Bitcoin Bulls Get a Lift Toward $113,000 Ahead of Fed Rates Decision

    KryptonewsBy No Comments3 Mins Read

    Key points:

    • Bitcoin brings upside volatility into the weekly close with a charge through $112,000 resistance.

    • Traders hope for new local highs next as the BTC price recovery continues.

    • The US Federal Reserve is tipped to cut interest rates again next week.

    Bitcoin (BTC) challenged $112,000 into Sunday’s weekly close as traders hoped for new local highs.

    BTC/USD one-hour chart. Source: Cointelegraph/TradingView

    Bitcoin eyes traders’ targets in fresh volatility

    Data from Cointelegraph Markets Pro and TradingView indicated that a range-bound BTC price action characterized the weekend.

    A late rebound on Friday helped bulls move to a higher level in the week’s range, helped by pleasing US inflation data.

    Now, market participants saw the potential for fresh highs to emerge, with the weekly close typically experiencing increased volatility.

    Trader Crypto Caesar observed the $112,000 resistance level being retested on the day.

    “A CLEAN break and close above it could confirm a bullish continuation toward $123K,” he wrote in a post on X.

    BTC/USDT perpetual contract one-day chart. Source: Crypto Caesar/X

    Crypto investor and entrepreneur Ted Pillows had similar ideas.

    “$BTC seems to be in a short-term uptrend. 4 consecutive green daily candles, which means someone is consistently TWAPing Bitcoin here,” he told X followers on the day. 

    “I’m still eyeing a $112,000-$114,000 zone, as a reclaim could push BTC above $118,000 really soon.”

    BTC/USDT one-day chart. Source: Ted Pillows/X

    Others waited in the wings, with the X analytics account named after famous economist Frank Fetter “watching” for a break of $113,000.

    This, it added last week, represented the current aggregate cost basis for Bitcoin’s short-term holders — entities hodling for up to six months.

    “If BTC can reclaim the short-term holder cost basis at $113k, a move into the blue band of $130k – $144k feels right,” it said.

    Bitcoin STH cost basis. Source: Frank A. Fetter/X

    Fed rate-cut odds boost risk-asset play

    Looking ahead, the coming week holds another key event for crypto and risk-asset investors.

    Related: Worst Uptober ever? Bitcoin price risks first ‘red’ October in years

    The US Federal Reserve, fresh from cooler-than-expected inflation numbers, was expected to cut interest rates by 0.25% at its Oct. 29 meeting.

    Data from CME Group’s FedWatch Tool put the odds of that outcome at more than 98% at the time of writing.

    Fed target rate probabilities for October FOMC meeting (screenshot). Source: CME Group

    Commenting, trading resource The Kobeissi Letter put the Fed’s cuts in context as part of a worldwide rates “pivot” by central banks.

    “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,” it wrote on X. 

    “Global monetary easing is in full swing.”

    Global central bank interest-rate data. Source: The Kobeissi Letter/X

    This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.