Bitcoin Price Nears $120,000 Amid Strong Weekly Rally
Bitcoin (BTC) price is around $120,000 as of Friday. It rose nearly 7% this week due to optimism about the “Uptober” rally. Institutional investors support this rise. BTC spot Exchange Traded Funds (ETFs) saw inflows of over $2 billion this week. Companies like Metaplanet and Strategy added more BTC to their reserves. Market sentiment is positive as traders expect the US Federal Reserve to cut interest rates on October 29.
Q3 Gains and Strong Outlook for Q4
Bitcoin ended September with a 5.16% gain, closing above $114,000. For the third quarter, BTC gained 6.31%. Historically, October has been a strong month for Bitcoin, with an average return of 20.62% over the past 11 years. The fourth quarter is usually the best, averaging 78.88% gains. If this trend continues, Bitcoin could reach new highs by the end of 2025.
Macroeconomic Factors and Institutional Demand Boost Bitcoin
Bitcoin’s recent rise is supported by weak US dollar pressure and economic concerns. The US government shutdown and weak job data pushed the dollar lower. Private-sector jobs fell by 32,000 in September, the biggest drop since March 2023. This data increased expectations for two more Fed rate cuts by year-end. Traders now see over a 97% chance of a rate cut on October 29.
Institutional investors are returning strongly. Bitcoin spot ETFs recorded $2.25 billion in inflows this week, the highest since mid-September. Japanese firm Metaplanet bought 5,268 BTC, raising its total to 30,823 BTC. Strategy added 196 BTC, bringing its total to 640,031 BTC.
Altcoin ETFs and Market Liquidity
The US Securities and Exchange Commission (SEC) recently approved new rules to speed up ETF approvals. Many spot altcoin ETFs may launch in October, which could boost crypto demand. Vanguard is also exploring crypto ETFs for its clients after years of skepticism.
However, the US government shutdown and upcoming banking holidays in Asia may reduce market liquidity. These factors could delay some ETF approvals and economic data releases.
Bitcoin Exchange Reserves Hit Lowest Since 2018
Bitcoin held on exchanges dropped to 2.4 million BTC this week. This is the lowest level since 2018. Lower exchange reserves mean less selling pressure and fewer coins available to trade. This scarcity often signals a bullish market.
Technical Signs and Price Targets
Bitcoin futures on the Chicago Mercantile Exchange show a price gap between $110,990 and $111,355. Markets often fill these gaps before continuing trends. Traders should watch this area for possible short-term retracement.
BTC has gained nearly 7% this week, trading near $120,000. A weekly close above this level could push Bitcoin toward its all-time high of $124,474. If it breaks that, the next target is $145,159, based on Fibonacci levels.
The weekly Relative Strength Index (RSI) is 60, showing growing bullish momentum. On the daily chart, Bitcoin is above its 50-day moving average at $114,076. The daily RSI is 63, and the MACD indicator shows a bullish crossover, suggesting an upward trend. If a correction happens, support is near $116,000.
