Bitcoin prices suddenly rose on Tuesday, October 28, hitting a high of $116,200 as traders awaited future interest rate decisions and a meeting between President Trump and Xi Jinping.
summary
- Bitcoin prices rose to $116,200 as expectations for a Fed rate cut rose.
- The US released a weak consumer confidence report.
- Amazon and UPS have announced large-scale layoffs.
Bitcoin (BTC) has risen more than 11% from its lowest levels this month. It remains well below its year-to-date high of $126,300.
Bitcoin price soars ahead of Fed
There are several reasons why the price of Bitcoin suddenly increased in the past two hours. The odds of such a cut increased after the US released its consumer inflation report for September on Friday.
The report revealed that the composite consumer price index rose slightly in September while the core figure fell. As the core CPI increased from 3.1% to 3.0%, the composite CPI increased slightly to 3.0%.
In a separate report released today, consumer confidence index fell to 94.6 in October from 95.6 in September. Labor market turmoil led to a decline in confidence and continued inflation.
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There are signs that the labor market will deteriorate further. Amazon announced plans to lay off 30,000 employees, and UPS plans to lay off 14,000 workers. These job cuts will result in an annual workforce reduction of 48,000.
Bitcoin prices also rose as the meeting between President Donald Trump and Chinese President Xi Jinping approached. The two men signed a document negotiated by their leaders over the weekend and are likely to commit to further talks.
A trade deal between the US and China would be bullish for Bitcoin and crypto markets as it would reduce the biggest geopolitical risk.
Bitcoin prices are also benefiting from continued spot ETF inflows. Existing funds had inflows of more than $149 million on Monday, after adding $90 million on Friday.
BTC price technical analysis
BTC price chart |Source: crypto.news
The daily chart shows that BTC price has rebounded after bottoming at $103,5775 earlier this month. It is above the 50-day moving average, forming a very bullish megaphone pattern.
This pattern consists of two branching trend lines, much like a megaphone. Therefore, the coin is likely to continue rising as the bulls target the psychological point of $120,000. A break below the $110,000 support will invalidate our bullish prediction.
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