Bitcoin price rose suddenly on Tuesday, Oct. 28, hitting a high of $116,200 as traders waited for the upcoming interest rate decision and Trump’s meeting with Xi Jinping.
Summary
- Bitcoin price jumped to $116,200 as hopes of a Fed cut rose.
- The US published weak consumer confidence report.
- Amazon and UPS announced large-scale layoffs.
Bitcoin (BTC) has jumped by over 11% from its lowest level this month. It remains much lower than the year-to-date high of $126,300.
Bitcoin price jumps ahead of Fed
There are a few reasons why Bitcoin price went up suddenly in the past two hours. Odds of these cuts rose after the US published the September consumer inflation report on Friday.
The report revealed that the headline Consumer Price Index rose modestly in September as the core figure moved downwards. The headline CPI rose slightly to 3.0% as the core CPI moved from 3.1% to 3.0%.
Another report released today showed that consumer confidence dropped to 94.6 in October from 95.6 in September. Confidence fell because of the jitters of the labor market and inflation continued.
There are signs that the labor market is weakening further. Amazon announced plans to fire 30,000 workers, while UPS will fire 14,000 workers. These layoffs will bring the yearly cuts to 48,000.
Bitcoin price also jumped as the meeting between Donald Trump and Xi Jinping nears. The two will likely sign a document negotiated by their top officials last weekend and commit to more talks.
A trade deal between the US and China will be bullish for Bitcoin and the crypto market as it reduces the biggest geopolitical risk.
Bitcoin price is also benefiting from the ongoing spot ETF inflows. Existing funds had over $149 million in inflows on Monday after adding $90 million on Friday.
BTC price technical analysis
The daily chart shows that the BTC price has rebounded after bottoming at $103,5775 earlier this month. It has remained above the 50-day moving average and formed the highly bullish megaphone pattern.
This pattern is made up of two diverging trendlines and closely resembles a megaphone. Therefore, the coin will likely continue rising as bulls target the psychological point at $120,000. A drop below the support at $110,000 will invalidate the bullish forecast.
