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Bitcoin hits $116,000 on hopes of US-China trade deal


Bitcoin (BTC) started the last week of October with a welcome rebound; Can BTC DIP Price Cancel From All Time High?

  • Bitcoin reached $114,500 for the weekly close as the Bulls staged a much-needed comeback, but many traders remained unconvinced.

  • FOMC Week began with stocks breathing a sigh of relief as US-China tariff odds eased.

  • Continued rate cuts could boost BTC price action by default, according to research, as AI predicts a return to $125,000.

  • “Uptober” 2025 for Bitcoin may avoid having the notorious title of “Worst October Ever.”

  • Short-term holders returned to profits, with room to grow before hitting classic retracement levels.

Bitcoin price hurdles last as $115,000 returns

Bitcoin delivered for the Bulls on the weekly close.

Data from Cointelegraph Markets Pro and TradingView BTC/USD shows bound for a rebound at $114,500 and retracement to the 21-week exponential moving average (EMA).

BTC/USD hourly chart with 21-week EMA. Source: Cointelegraph/TradingView

Over the weekend, traders and analysts again flagged the capital trend line as a key level to advance.

“Bitcoin is enjoying a strong rebound from the MACRO Range Low,” he wrote in a post on X Sunday.

“Still macro consolidation within this monthly range. In fact, Bitcoin has a chance to make new monthly September support by the end of the month.”

BTC/USD one month chart. Source: REK Capital/X.

Despite its impressive recovery, Bitcoin is still struggling to convince many market participants that the bull market is back.

Among them, the Roman trader once again showed weakness in higher time frames, low volume and variations of the relative indices of bitcoin (RSI).

“Watching for potential HTF Head & Shoulders Bearish Reversal Setup. Confirmed by a break below the 109k Neckline,” He He He Neckline,” said X Followers Monday next to a weekly chart.

“I’m very optimistic that HTF has sold out and I don’t expect much higher. We’ll see if it turns into a pullback or more consolidation for higher.”

BTC/USD one week chart. Source: Roman/x

Trading Account HTL-NL placed BTC/USD in an expanding triangle, arguing that the overall situation has not changed after the breakout.

Data from the monitoring source Coinglass showed price cutting through liquidation levels above and below as volatility returned.

BTC Liquidation Heatmap. Source: Coinglass

Fed Rate Cut Expected as Stocks Surge

Federal Reserve Wednesday interest rate decision Macroeconomic news is taking center stage this week, and markets are betting on positive outcomes.

Amid the lack of inflation data due to the government shutdown, the Fed will be less forthcoming than usual when it comes to rates.

That said, markets are confident that the Federal Open Market Committee (FOMC) will opt for a 0.25% cut; Data from CME Group’s Fedwatch tool puts the odds at over 95%.

Rate target probabilities for the October FOMC meeting (screenshot). Source: CME Group

The only data print released, last week’s consumer index (CPI), extended the risk asset risk case by showing inflation below expectations.

“We have a big week ahead,” Kobeissi wrote to the trade source Summary.

Kobeissi noted that significant corporate earnings will add to the potential for market volatility in the coming days, with Microsoft, Meta, Amazon and more due to report.

Another major topic on the radar is the US-China trade deal. The threat of tariffs Sent crypto and stock plummeting Earlier this month, over the weekend, Washington announced that a deal was close to being completed.

US President Donald Trump will meet with China’s Xi Jinping Thursday.

S&P 500 chart. Source: The letter of Kobeissi/x

Stock futures advanced to start the week in response to the news, removing a major obstacle to the continuation of the bull market.

“The S&P 500 has now added +$3 trillion since the October 10 low after the President’s 100% Chinese tariffs were announced,” Kobeissi added.

“This is the most profitable market of all time.”

AI sees an all-time high this month

Continuing on the subject of interest rates, network economist Timothy Peterson had more “Hopium” for Bitcoin Bulls this week.

Bitcoin price cycles, he argued, are directly influenced by rate policy; Thus cutting cycles can be a boost in the case of the bull.

“Interest rates are still very high, but the q will come,” he Forecast.

Peterson gained fame for his research on BTC price growth and Metcalfe’s law, which links the expansion of the Bitcoin Network to the long-term price floor.

“Metcalfe’s Addresses/Laws are how Bitcoin is valued,” he continued.

“This trend is up. There is no bubble. All dips are temporary, eventually we will be higher.”

BTC/USD vs. Metcalfe’s Law. Source: Timothy Peterson/x

Revealing the latest readings from an AI simulation of how BTC price action could shape up in the near term, Peterson set $115,000 as the new focal point.

$125,000 is on the table as a plausible target before the end of October.

The model’s readings were only reduced as a result of the recent downside, which saw BTC/USD briefly touch $102,000 on Binance.

AI BTC Price Prediction Price. Source: Timothy Peterson/x

Uptober finally returns to “Green”

With price volatility still high, Bitcoin’s 2025 “until” still hangs in the balance.

At $115,000, BTC/USD is almost 1% higher than October’s opening level, helping to avoid a “red” month at an unexpected time.

BTC/USD monthly returns (screenshot). Source: Coinglass

Despite this, the performance of October this year is still far from optimal – as Cointelegraph reportedaverage gains are 20% since 2013.

Market participants are focused on a major return next month.

Trader Daan Crypto Trades predicted an “interesting” monthly close, with sentiment in both September and October conflicting price action.

“Meanwhile, the price of Bitcoin has opened and closed within a small 8% price range over the past 4 months,” he said X Followers.

“A bigger transition will come at some point. I assume that the end of 2025 will be more volatile than the previous months.”

Crypto Fear & Greed Index (screenshot). Source: alternative.me

Data from Crypto Fear & Greed Index Sentiment in the crypto market is currently indicated to be in “neutral” territory.

The one-month chart, meanwhile, shows a fresh record in the making. At $115,750, BTC/USD will hit a monthly near historical high.

BTC/USD one month chart. Source: Cointelegraph/TradingView

Short-term holders are back in the black

Of all Bitcoin hodlers, recent buyers may heave the biggest sigh of relief this week.

Related: Bitcoin Flashing ‘Rare’ Top Signal, Hayes Tip $1M BTC: Hodler’s Digest, October 19 – 25

Short-term holders (STHS)—entities purchased within the last six months—are now back above their combined cost basis, near $113,000.

Data from onchain’s analytics platform Cryptoquant Confirming that the short-term holder’s profit ratio (SOPR) is back above 1, reaching its highest level since October 8.

Bitcoin sth-sopr. Source: Cryptoquant

Cryptoquant Research revealed that recently, the general supply in profit has the possibility to reach 95% before a local correction.

“These corrections often find a bottom around the 75% threshold. More precisely we got 73% in September 2024: 73%, 76% in April 2024 and recently 81%,” wrote Contributor Darkfost in one of them Quick Take Blog posts Sunday.

“Today, the percentage of supply to income is slowly increasing again, currently around 83.6%, a level that can be interpreted as encouraging, suggesting that investors are once again willing to hold their BTC while expecting further upside.”

Bitcoin % supply to profit. Source: Cryptoquant

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.