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- Bitcoin is holding above $110K, signaling market resilience.
- Fed rate cut odds at 98% could boost investor sentiment.
- $112K is key resistance; break could open path to $120K.
Bitcoin is showing resilience as it hovers around $111,742, marking a 0.5% gain in the last 24 hours. With a 5% increase over the past week, investors are eyeing the $120K mark amid ongoing market consolidation and growing optimism over a potential Federal Reserve rate cut.
Market Overview: Steady Gains Across Cryptos
The broader cryptocurrency market is modestly up, with altcoins like XRP, SOL, ADA, and DOGE registering small gains. Despite lingering bearish sentiment, Bitcoin has remained strong above critical support levels, suggesting that market confidence is slowly returning. Spot Bitcoin ETFs have seen a net inflow of $149.96 billion, reflecting renewed investor interest, even as some ETFs experienced withdrawals totaling $90.60 million over the past three days.
Fed Rate Cut Boosts Optimism
U.S. inflation in September came in lower than expected, strengthening predictions that the Federal Reserve will cut rates next week. The CME’s FedWatch tool now shows a 98% probability of a rate reduction. This anticipation, combined with signs of a slowing labor market, has fueled speculation that riskier assets, including Bitcoin, could see increased demand. Investors are closely watching how these macroeconomic shifts might drive market sentiment.
Technical Outlook: Key Levels to Watch
Bitcoin has rebounded from its $110,000 support zone, signaling short-term strength. Analysts note that reclaiming the $112,000 resistance is crucial for launching a fresh uptrend. Breaking this level could pave the way for moves toward $113,000 and eventually the $120,000 mark.
$BTC bounced back from its $110,000 support zone again.
— Ted (@TedPillows) October 25, 2025
The next crucial level to reclaim is $112,000 which will start the next uptrend.
If Bitcoin gets rejected again, expect a sharp correction towards the $108,000-$110,000 level. pic.twitter.com/EfJepr27EY
On the flip side, if Bitcoin faces rejection at $112,000, a correction could push prices back toward $108,000–$110,000. Technical indicators like the RSI at 60 and a bullish MACD line suggest the cryptocurrency is in a neutral-to-positive zone, but cautious monitoring is essential as momentum builds.
Bitcoin’s path to $120K appears plausible if bullish momentum continues and the Fed delivers the anticipated rate cut. Investors should watch key resistance levels and market signals closely, as the next few trading sessions could set the tone for Bitcoin’s short-term trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
