Bitcoin is back on the move. After a pullback earlier this month of about 20%, the world’s largest cryptocurrency has now logged five straight sessions of gains - climbing past $116,000 for the first time in a few weeks and reigniting optimism across the crypto market.
Bitcoin Price (BTC)
What’s Behind the Rally
It’s a combination of macro relief and strong technicals. Inflation data came in softer than expected, giving the Federal Reserve more room to cut rates next week. Lower rates reduce pressure on risk assets - and crypto tends to benefit most when liquidity flows return.
Meanwhile, progress in the U.S.–China trade talks over the weekend has eased some of the geopolitical tension that’s kept investors cautious. Together, those factors have sparked a classic “risk-on” shift that’s lifting everything from tech stocks to Bitcoin.
Bitcoin Could Test $120,000
Technically, Bitcoin has broken through its 50-day exponential moving average around $114,000, a key short-term resistance level traders have been watching. That move helped trigger a wave of short covering - more than $370 million in crypto shorts were liquidated in the past day - which added extra fuel to the rally. With that momentum, Bitcoin could soon test the $120,000 to $125,000 range if the broader market remains supportive.
Ethereum, XRP, and Dogecoin have also joined the move higher, suggesting this rally has breadth beyond just Bitcoin. Ethereum is back above $4,000.
Trade War Profits Are Back
Breaking news: China just walked away from key U.S. trade talks —
and markets are reacting fast.
Most investors see chaos… I see opportunity.
Because history shows every tariff cycle creates massive winners —
the companies positioned on the right side of the trade war.
In my latest video, I reveal the top “Tariff War” stocks set to surge as America
doubles down on manufacturing, energy, and supply-chain independence.
Eyes on the Fed
The near-term focus now shifts to the Fed’s upcoming policy decision on Wednesday and whether the rate-cut narrative holds for future Fed meetings.
From a long-term perspective, though, this kind of strength after a correction is encouraging. It reinforces the idea that institutional and retail investors alike continue to view Bitcoin as a legitimate alternative asset - one that thrives when confidence returns to the market.
The bottom line: This rally looks sustainable as long as macro conditions cooperate. We’re not in bubble territory - we’re in the early innings of another potential crypto uptrend that sends Bitcoin to the $150,000 level.
Here’s to the future,
Matt McCall
Editor, Market Insights
