Cryptocurrency markets continued their impressive rally, marking a fifth consecutive day of gains as Bitcoin surged beyond the $115,000 mark and Ethereum broke the crucial $4,200 threshold. This upward momentum was largely attributed to easing trade tensions between the U.S. and China, coupled with rising expectations for a forthcoming interest rate cut by the Federal Reserve.
As of this morning, the total cryptocurrency market capitalization registered an increase of approximately 1.9%, reaching $3.92 trillion. This uptick comes as investors prepare for the Federal Reserve’s meeting on October 29, where predictions indicate a 98.3% likelihood of a 25-basis-point rate reduction, as outlined by CME’s FedWatch Tool.
This five-day rally saw Bitcoin opening at $111,032 on October 22 and climbing to $115,956 today, effectively gaining 4.4% and breaking through the significant 50-day moving average level of $114,176. Ethereum, on its part, expanded from $3,950 to $4,253, reflecting a gain of 7.7% as it also broke through resistance levels from mid-August.
Bitcoin traded at $115,956 at 8:17 AM CET, recording a daily increase of 1.22% after a notable 2.6% rise on Sunday. The cryptocurrency’s recovery illustrates strong market resilience, with bulls eyeing the next target at the psychological barrier of $120,000. This significant price level is seen as pivotal, with further breakouts potentially leading towards $123,000 and $126,000—previous all-time highs.
The ignition of this weekend’s rally was propelled by a newly established trade framework between the U.S. and China, announced after negotiations in Malaysia on October 26. U.S. Treasury Secretary Scott Bessent characterized the accord as a “very substantial framework,” designed to stave off potential 100% tariffs and to halt China’s rare-earth export restrictions.
Analysts note that this market rebound has been buoyed by favorable macroeconomic conditions, with softer CPI data enhancing prospects for an accommodative monetary policy from the Fed. Strategist Joel Kruger from LMAX highlighted that this favorable environment, along with reduced yields and a heightened risk appetite, has created a fertile ground for renewed demand in digital assets as the year winds down.
From a technical analysis perspective, Bitcoin’s recent performance indicates a potential return to price discovery mode, with forecasts suggesting it could reach new all-time highs before year-end. The active squeeze in bearish positions can be seen, with data from CoinGlass revealing approximately $319 million in short liquidations across 24 hours, underpinning strong buying interest.
Ethereum’s performance mirrored Bitcoin’s, gaining 5% on Sunday followed by an additional 2% increase today. It successfully climbed above both the 50-day and 200-day moving averages, reaffirming the importance of the $4,000 level in traders’ eyes. Analysts believe that Ethereum is well-positioned for further gains, potentially reaching $4,800, consistent with past highs in August.
XRP, while rising for the fifth consecutive day, remains below critical resistance levels. The coin has bounced back from the lows experienced earlier this month, although it faces hurdles near the $2.60-$2.70 mark. Traders are advised to monitor XRP closely, as a dip below $2.00 could signal further adverse trends.
In contrast, Dogecoin exhibited a different narrative, marking gains of nearly 5% over the weekend but struggling to break above resistance levels established in August. Technical indicators suggest a troubling ‘death cross’ scenario, where key moving averages signal potential future declines unless it can successfully breach the $0.22 resistance area.
Amid this volatile environment, historical trends suggest that the impending months often yield positive outcomes for cryptocurrency markets, thus paving the way for optimism as Q4 progresses. Analysts emphasize the significance of keeping a close watch on both macroeconomic developments and technical indicators to capitalize on potential trading opportunities in this rapidly evolving landscape.
