Étienne Girard
Bitcoin (BTC) rallied above $110,000 early Monday, bouncing back after several days of weakness as traders regained confidence in global economic conditions.
According to data from PRIME, Bitcoin has risen 3.16% in the past 24 hours, currently trading around $110,544, marking its first move above the key threshold in four days.
The bullish momentum wasn’t limited to Bitcoin — Ethereum (ETH) jumped 3.6% to $4,036, reclaiming the $4,000 level, while BNB rose 3.91%, XRP gained 3.54%, and Solana (SOL) climbed 2.68%, signaling renewed optimism across the crypto market.
“The recent Bitcoin rebound above $110,000 reflects strong institutional inflows and a more supportive macroeconomic backdrop,” said Rachael Lucas, crypto analyst at BTC Markets.
Lucas added that demand for spot Bitcoin ETFs has increased again, as investors viewed the recent dip as a buying opportunity rather than a trend reversal.
The broader crypto market had faced pressure in recent weeks following U.S. President Donald Trump’s new China tariffs and concerns over regional bank exposure to bad loans.
However, sentiment improved after signs that the Federal Reserve may cut interest rates in October and end quantitative tightening sooner than expected, easing financial conditions for risk assets.
Powell’s Comments Boost Risk Appetite
“Chair Jerome Powell acknowledged that while growth remains stronger than expected, the labor market is showing signs of weakness,” Lucas said. “This shift has lowered bond yields and improved liquidity for digital assets.”
The CME FedWatch Tool now indicates a 98.9% probability of a 25 basis point rate cut at the next Fed meeting.
Upcoming U.S. inflation and manufacturing data, along with Australia’s employment and retail reports, could play a major role in shaping rate expectations and risk sentiment, Lucas added.
Key Levels to Watch
According to Vincent Liu, CIO at Kronos Research, Bitcoin’s immediate support lies near $107,000, while resistance sits around $110,000 to $111,000.
“A drop below $107K could trigger liquidations and a shift in sentiment, especially if new macro or geopolitical shocks appear,” Liu warned. “Conversely, sustained buying above $111K could spark a fresh leg higher in Bitcoin’s rally.”
Lucas also highlighted that Bitcoin is testing a resistance zone between $111,700 and $115,500, and a break above $111,000 could lead to a short squeeze, accelerating upward momentum.
Geopolitical Risks Still Loom
Despite the recovery, analysts remain cautious. Lucas noted that U.S.–China tensions continue to weigh on investor sentiment, particularly with the upcoming Trump–Xi meeting later this month.
“This meeting carries significant headline risk,” she said, warning that renewed tensions could undermine the recent rally if geopolitical uncertainty escalates.
