Key Takeaways
- •Bitcoin reached $116,000 amidst increasing volatility as the US trading session opened.
- •Traders are divided on short-term Bitcoin price movements, with some targeting $117,000 before the Federal Reserve's interest rate decision on Wednesday.
- •The CME futures gap is gaining attention as a potential downside target.
Bitcoin (BTC) surpassed the $116,000 mark following the opening of Wall Street trading on Tuesday, continuing its upward trend in October.
FOMC Meeting Drives Bitcoin Price Volatility
Data from Cointelegraph Markets Pro and TradingView indicated a 1.6% daily increase in Bitcoin's price, pushing BTC/USD to $116,077 on Bitstamp.
In a surprising move for many traders, Bitcoin managed to resist the typical trend of declining before major US inflation events, such as the upcoming Federal Reserve interest rate decision.
The Federal Open Market Committee (FOMC) was widely anticipated to announce a 0.25% rate cut on Wednesday. Markets were also closely monitoring Federal Reserve Chair Jerome Powell's statements for insights into future monetary policy direction during the subsequent press conference.
Crypto trader, analyst, and entrepreneur Michaël van de Poppe commented on X, stating, "So far, so good on Bitcoin. It's nicely holding up here and doing a slight retest after this..."
"I would assume that we're bottoming here today and that we start the uptrend in the remainder of the week."
In a separate post, Van de Poppe suggested that an inverse correlation between Bitcoin and gold was contributing to the current upward momentum. Gold had fallen to $3,886 per ounce on the day, its lowest level since October 6.
"Gold coming down and consolidating is heavily bullish for risk-on assets, including Altcoins," he wrote.
Meanwhile, trader Killa had set a target of $117,000 as a potential local top before the FOMC meeting, anticipating a subsequent price correction to fill the weekend gap in CME Group's Bitcoin futures market, which is situated near $111,000.
$BTC
— Killa (@KillaXBT) October 28, 2025
Your welcome. My LTF plan playing out perfectly. Bullish narrative into FOMC. https://t.co/BIGR5q8kR9pic.twitter.com/U2nsYJUrtv
"CME gap as you can see is not that far away & I think breaking above this blue barrier is going to be a challenge," Killa stated.
"That said, we have a high chance of re-visiting 111.2K."
$111,000 CME Gap Remains a Key Focus
Many market observers continued to anticipate a Bitcoin price decline at some point before the Federal Reserve's announcement.
Trader BitBull identified two key levels of interest – $106,000 and $110,000 – that could serve as support before BTC/USD potentially reaches new all-time highs.
"I'm still expecting the BTC top is not in, and there's one big leg up left," he informed his followers on X.
Concerns regarding insufficient trading volume and bearish divergences in leading indicators have continued to fuel doubts about the sustainability of the bull market and its potential to produce fresh all-time highs.