Bitcoin has been steady for the last week, hovering around a critical support and resistance level at $108,000. Analysts suggest that a significant ascent could be imminent.

This year has primarily been about repositioning in Bitcoin’s market framework across both spot and derivatives. Crypto entrepreneur Joe Consorti remarked on Thursday, *“There has been long-term holder distribution above $100k and $110k, paired with macro headwinds affecting sustained bids, capped by a substantial liquidation event that reset positioning in derivatives.”*

Three Key Influences on Bitcoin This Quarter

Bitcoin’s potential next major move will hinge on two significant events: the US government’s reopening after a three-week shutdown and an upcoming trade tariff discussion between the US and China.

*“With leverage flushed, the government is set to reopen, and the Trump-Xi meeting looms, Bitcoin should trend upwards as the year comes to a close.”*

Moreover, the US Federal Reserve is growing more accommodative, indicating that portfolio managers are anticipated to rebalance towards riskier assets by year-end.

*“Despite prevalent negative sentiment, it’s hard not to remain optimistic over the next months and throughout into 2026.”*

A widely expected Federal Reserve rate cut next week is also considered bullish for Bitcoin and the broader crypto markets. Market analysts anticipate that even if today’s CPI inflation report presents surprises, it won’t deter the Fed’s rate-cutting agenda, as its focus remains on labor market challenges.

Investor Fred Krueger highlighted that there will be two additional rate cuts this year, with a further cut predicted in January, potentially extending the bullish cycle.

*“A rate cut in 6 days, then in 48 days, and another in 97 days. We might have a new Fed Chair in May who could shift policies dramatically. Prepare for missing out if your analysis is solely based on cycle theories.”*

Trader ‘Stockmoney Lizards’ noted that while there are no primary indicators flashing red, some short-term bearish signals exist.

Related Insights

• Investor Note: Previous events of significant capital outflows often lead to favorable opportunities.
• Summary from Trader Daan: The total market capitalization appears stable, provided it maintains its current levels.

Conclusion

In conclusion, observers suggest that the current landscape could present fresh buying opportunities as various market forces begin to align favorably.