BTC nears $114,000 amid mounting market confidence that the Federal Reserve will begin easing monetary policy — fueling optimism across the crypto sector.
Bitcoin (BTC) surged past $113,500, marking a breakout from its recent consolidation zone as traders position for a potential Federal Reserve rate cut. With rate-cut odds now exceeding 98%, according to market pricing, investors are shifting back toward risk assets — and Bitcoin appears to be a primary beneficiary of that sentiment.
The BTCUSDT daily chart shows Bitcoin breaking out of a descending channel, with price now retesting the $113,500–$114,000 resistance area. This breakout follows several weeks of accumulation around the $106,000 support zone, highlighted in orange, which held firm despite multiple downside attempts.
“Bitcoin’s breakout reflects a broader shift in investor expectations,” said BITX market analyst. “As traders anticipate monetary easing, liquidity tends to flow into high-risk, high-return assets — and Bitcoin is leading that charge.”
The Federal Reserve’s next policy meeting looms large, with futures markets heavily pricing in a rate reduction amid slowing inflation and weaker economic data. This macro backdrop has historically been supportive of cryptocurrency rallies, as lower interest rates reduce the opportunity cost of holding non-yielding assets like Bitcoin.
From a technical standpoint, BTC’s volume profile suggests accumulation, and momentum indicators are turning positive for the first time in weeks. A confirmed breakout above $114,000 could open the path toward the next resistance near $118,000, as shown in the green zone.
“The $113,000–$114,000 region is a key inflection point,” According to BITX analysts. “If bulls maintain control, we could see a strong continuation toward mid-$120,000 levels before profit-taking sets in.”
Meanwhile, market sentiment across crypto has improved, with Ethereum and other major altcoins also climbing in tandem. The total crypto market capitalization rose as traders priced in a softer Fed stance, indicating a renewed appetite for digital assets ahead of the central bank’s decision.
Bitcoin’s decisive move above $113,500 underscores growing optimism that monetary policy easing will ignite a new phase of crypto market strength. As the Fed’s rate-cut odds surpass 98%, traders are watching closely to see if BTC can sustain momentum above resistance — potentially confirming the start of a broader bullish reversal leading into November.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.