Bitcoin has posted three consecutive bullish sessions in the short term, signaling a renewed buying bias in the market that has remained steady. This momentum has been supported by growing institutional interest and increasing optimism that central banks — particularly the Federal Reserve — will maintain a low interest rate outlook.
However, as the price continues to rise, a degree of neutrality has started to emerge, suggesting that unless confidence continues to strengthen, the market could enter a phase of indecision in the coming sessions.
Is Appetite for BTC Growing?
In recent sessions, risk appetite across financial markets has picked up again, initially due to a temporary easing in U.S.–China trade tensions and, more recently, in anticipation of the Federal Reserve’s policy decision, which could include further rate cuts. Lower interest rates reduce borrowing costs and tend to boost demand for riskier assets, such as equities and cryptocurrencies — particularly Bitcoin.
This effect has been reflected in both retail demand and institutional interest, with Bitcoin ETFs once again showing positive net inflows. According to data from October 24, inflows surpassed $90 million, with no recorded outflows, confirming that institutional demand for BTC has remained solid in the short term and has helped drive the recent price recovery.
Source: Theblock
The growing appetite for BTC is also evident in the increase in open interest, which has shown a sustained rebound since October 22, climbing back toward the $38 billion mark. This rise, accompanied by price gains, reflects a higher number of active long positions, suggesting a consistent recovery in demand over the short term.
Source: Cryptoquant
In this environment, market metrics indicate a steady expansion in demand, closely tied to the positive sentiment toward risk assets, particularly Bitcoin. This momentum largely depends on the continuation of a low interest rate policy through the remainder of the year, which would continue to encourage capital flows into alternative assets. At the same time, a reduction in global trade tensions would likely reinforce this optimism, providing a more favorable backdrop for risk appetite. If both conditions remain stable and no major shocks undermine market sentiment, interest in BTC could continue to strengthen in the coming sessions.
How Is Market Confidence Holding Up?
The increase in risk appetite has also been reflected in crypto market confidence. The Fear and Greed Index has shown a significant rebound, moving from the “fear” zone to “neutral”, reaching 42 points after several weeks of weakness.
Source: Coinmarketcap
This sustained recovery in sentiment indicators suggests that the market is consolidating a stable level of demand in recent BTC price movements. If macroeconomic conditions continue to support confidence and the index advances toward the “greed” zone, it could signal the beginning of a stronger and more persistent demand phase lasting several weeks. In this case, buying pressure could remain a dominant force in the short term. As confidence builds, new market participants could be drawn in, further reinforcing the bullish momentum.
Bitcoin Technical Outlook
Source: StoneX, Tradingview
- Dominant Sideways Channel: Since July 15, BTC has been trading within a lateral range, with resistance around $120,000 and support near $108,000. So far, price movements have not been strong enough to break out of this range, suggesting it will likely continue to dominate BTC price action in the near term. As long as this pattern remains intact, a defined directional trend is unlikely to emerge in the medium term.
- RSI: The RSI line remains close to the neutral 50 level, showing a balance between bullish and bearish momentum over the past 14 sessions. If this pattern persists, indecision could continue to characterize BTC price action in the coming days.
- TRIX: Similarly, the TRIX indicator hovers around the zero line, reflecting a neutral stance in exponential moving averages. If this condition holds, BTC is likely to continue trading within a lateral range over the short term.
Key Levels:
- $120,000 – Major Resistance: This represents the most significant retracement zone of recent weeks and acts as the upper boundary of the lateral range. A sustained breakout above this level could reactivate strong bullish momentum and open the door to a long-term uptrend.
- $113,962 – Current Barrier: This level aligns with the 50-period simple moving average and the Ichimoku cloud. As long as the price fluctuates around this zone, BTC could extend its consolidation range.
- $108,000 – Key Support: This marks the lower boundary of the current range, coinciding with technical retracement areas observed since May. A break below this level would confirm a structural shift in trend, signaling the start of a more consistent bearish phase in the short term.
Written by Julian Pineda, CFA – Market Analyst
Follow him on: @julianpineda25
