Bitcoin Price Analysis: BTC Eyes $120K as Sentiment Turns Bullish

Highlights:

• Bitcoin is making higher lows as volumes rise
• Price action points to a buildup in momentum
• Possible US-China deal and US rate cuts could send BTC through $120k 

Bitcoin (BTC) is in the green today, and its gains have uplifted the broader market intraday. When writing, Bitcoin was trading at $115,291.13, up by 2.57% in the day. Bitcoin trading volumes have also exploded during the day. At press time, Bitcoin trading volumes were up by 149.39% to stand at $59.55 billion. 

Such a strong surge in volumes is an indicator that the money flow into Bitcoin is getting stronger. It goes to show that there is a growing expectation that bulls are back and that Bitcoin could be headed to new highs. The rising excitement around Bitcoin intraday has a solid basis to it. Multiple factors, ranging from macro ones to Bitcoin-specific ones, all point to a potential rally going into the future. 

Possible US-China Trade Deal Could Send Bitcoin to New Highs

One of the most significant macro factors supporting Bitcoin’s price action is an assertion by Trump that they are close to a trade deal with China. The uncertainty around trade between the US and China has been the primary cause of market uncertainty in 2025. This is quite evident in Gold’s strong rally for the better part of the year, and it has recently been making new highs almost daily.

Now that Trump has hinted at a possible deal, sentiment is changing in favor of risk-on assets. Stock indices are making new all-time highs today, and Bitcoin is following as well. Given that Bitcoin has been known to outperform stocks in bull markets, the odds are that it will continue to attract substantial capital flow as long as sentiment remains risk-on. 

President Trump just said he expects a deal with China and will visit early next year 👀 pic.twitter.com/wpcL1zdAwd

— Shay Boloor (@StockSavvyShay) October 27, 2025

Still on macros, there is a growing consensus that the Federal Reserve will cut interest rates on Wednesday, October 29. If this materializes, it would mark the end of quantitative easing and the beginning of monetary easing. The result is that capital would become cheaper and benefit high-performing assets like cryptocurrencies.

🚨 THIS WEEK’S SCHEDULE IS GIGA BULLISH!

MONDAY → QT ENDS
TUESDAY → FED REBALANCES BALANCE SHEET
WEDNESDAY → FED RATE CUTS
THURSDAY → US–CHINA DEAL
FRIDAY → MONEY PRINTER LAUNCH
SATURDAY → TARIFF DEADLINE

THE LONGEST #ALTSEASON EVER STARTS THIS WEEK! pic.twitter.com/waAjEnxHBa

— Wimar.X (@DefiWimar) October 27, 2025

Bitcoin, being the number one and best-known cryptocurrency, could experience a parabolic price run if this happens. This explains why the price has started gaining momentum as investors take positions ahead of the potential rate cut. 

Global Regulations Increasingly Pro-Bitcoin

Outside of the macro factors, regulations across the globe are increasingly becoming pro-Bitcoin. The US has been at the forefront of pro-crypto rules in 2025, having passed both the CLARITY and GENIUS Acts. At the same time, Trump’s tech czar, David Sacks, has hinted that the market structure law could be signed this year. In Japan, regulations now allow banks to hold Bitcoin on their balance sheets.

WHITE HOUSE #BITCOIN ADVISOR SAYS MARKET STRUCTURE BILL "WILL BE SIGNED INTO LAW THIS YEAR"

THEY ARE TELLING YOU 🔥 pic.twitter.com/9yJDWICpWt

— The Bitcoin Historian (@pete_rizzo_) October 26, 2025

All these improvements in the regulatory environment make it easier for institutions to hold Bitcoin. The result is that capital flow into the number one cryptocurrency is set to go up over time. The availability of Bitcoin through institutional products like ETFs and ETPs also adds to the potential demand now that money flow favors risk-on assets. All this not only explains Bitcoin’s intraday rally and rising volumes, but also hints at a continuation of momentum in the short to medium term.

Technical Analysis – Bitcoin Price Making Higher Lows In A Bullish Channel

Bitcoin is currently making higher lows in a bullish channel. This is a signal that every dip in price is being quickly bought up.

It points to the underlying bullish momentum, which could get even stronger if interest rates are cut. If bulls sustain the momentum, the key level to watch short-term is the $116,088 resistance. A rally through $116,088 could send Bitcoin to prices above $120k in the short term.