Bitcoin and other major cryptocurrencies continued to rise on Monday after a strong weekend. Bitcoin gained more than 3% in the past 24 hours, briefly touching the $116,000 mark before slightly pulling back to around $115,000. Ethereum and other altcoins also joined the rally, showing a broad sense of optimism across the crypto market.
The mood among traders has turned more positive as several analysts expect Bitcoin to climb even higher soon. Adam Livingston, author of The Kobeissi Letter, pointed out that liquidity levels in the banking system are shrinking, which could benefit Bitcoin. He explained that bank reserves at the Federal Reserve have dropped to about $2.93 trillion, close to what he calls the “danger zone.” According to him, when reserves fall this low, scarcity tends to push money toward riskier assets like Bitcoin. He believes this could trigger a major rally in the weeks ahead.
Another reason behind the upbeat sentiment is the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping on October 30. The two leaders are expected to discuss trade relations, and a positive outcome could ease global market tensions. Investors believe that better trade ties might boost appetite for digital assets.
From a technical perspective, Bitcoin looks ready for another move upward. It recently bounced off a key support level near $106,000 and managed to close above its 50-day exponential moving average around $113,000. This move helped wipe out more than $300 million worth of short positions in the past day alone.
If Bitcoin manages to close above the $115,000 resistance level, it could quickly move toward $120,000, which is seen as the next major target for traders. The Relative Strength Index shows strong buying momentum, and the MACD indicator also supports the bullish trend.
However, if Bitcoin fails to stay above $115,000, it could see a short-term dip back toward $113,000 before making another attempt to rise. For now, though, most signs suggest that Bitcoin bulls are in charge, and many traders are watching closely to see if it can push toward new all-time highs in the coming days.
