Bitcoin's price soars towards $120,000 as a break of support and the Federal Reserve's interest rate cut boost the cryptocurrency's rally.
In the dynamic world of cryptocurrencies, Bitcoin (BTC) has broken above the significant milestone of $117,000 after a brief retest at $116,000 twice. This bullish move comes amidst a backdrop of sustained bullish sentiment in the stock market and a potential bullish breakout, as suggested by Wyckoff Insider's chart showing a "W range" pattern.
The "W" pattern, frequently observed in Wyckoff analysis, often precedes a significant upward move once volume confirms the breakout. TrendSpider's research supports this view, highlighting that W-bottom formations paired with strong volume have a high probability of resolving to the upside.
However, analysts warn that volatility risks persist in the crypto market, as emphasised by the International Monetary Fund. Despite this, the global crypto market cap is now above $4.1 trillion, with whale accumulation on the rise.
The Bitcoin rally coincides with the Federal Reserve's recent decision to cut rates by 0.25%, bringing the federal funds rate to 4.25%-4.50%. Lower interest rates historically benefit risk assets like Bitcoin, providing tailwinds for digital assets.
Analysts from Wyckoff Insider point to a developing "W range" formation between $90,000 and $100,000, suggesting institutional accumulation. If Bitcoin holds above $116,000 and maintains upward momentum, a push toward $120,000 could be imminent, according to Kamran Asghar. Some even predict that the Bitcoin price may potentially hit $120K by the weekend.
Sustained closes above $120,000 would be a key confirmation for bulls and might open the door to further upside into Q4 2025. However, traders are urged to remain cautious as false breakouts still account for roughly 30% of such moves.
The UK's Financial Conduct Authority (FCA) introduced new crypto rules on September 17 that could enhance market stability and encourage institutional participation. These regulatory developments could further support Bitcoin price predictions of a breakout toward six figures in the macro backdrop.
At press time, Bitcoin (BTC) was trading at around $117,288, up 0.34% in the last 24 hours. The crypto market remains volatile, but the current bullish momentum suggests an exciting period for Bitcoin investors and enthusiasts.
