Important points:
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Bitcoin soared above $111,000 on Monday, boosted by an improving macro environment and a potential U.S.-China trade deal.
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Technical analysis shows a bullish flag targeting BTC price between $186,000 and $192,000 in the coming weeks.
Bitcoin (BTC) rose above $111,000 at the start of European trading on Monday as improving macroeconomic conditions renewed investor confidence.
Macro data gives bullish clues to Bitcoin
Bitcoin price topped $111,430, up 4% in the past 24 hours and 7.6% above Friday’s low of $103,530, according to data from Cointelegraph Markets Pro and TradingView.
Related: Bitcoin’s next rally will begin after OG sells off: Analyst
Other top-value cryptocurrencies also took cues from Bitcoin, with Ether (ETH) rising 4.6% to regain the crucial $4,000 level.
XRP (XRP), Solana (SOL), BNB (BNB), and Dogecoin (DOGE) are up 3% to 5% in the past 24 hours. The global cryptocurrency market capitalization increased by 4.6% to $3.78 trillion.
Bitcoin’s recent rally has been driven by improved macroeconomic conditions following US President Donald Trump’s approval of a summit meeting with China’s Xi Jinping on October 31st.
The easing of tensions and the increasing likelihood of a trade deal between the US and China are positive catalysts for crypto prices.
Cryptocurrency prices have recently fallen following major macroeconomic headlines, including President Trump’s announcement of tariffs on China and growing concerns about US regional banks’ involvement in non-performing loans.
Meanwhile, market participants are pricing in a 99% chance of a 25 basis point rate cut at the FOMC meeting on October 28-29, which would cut interest rates to 3.75-4%, according to CME Group’s FedWatch tool.
Federal Reserve Chairman Jerome Powell recently signaled that quantitative tightening (QT) could end soon, perhaps by January 2026. This could further free up liquidity and reflect the sharp rise in crypto prices in 2021.
Bull Flag Converges on $190,000 BTC Price Target
From a technical perspective, Bitcoin’s latest rally today follows bullish signals from the RSI. While the momentum indicator hit its lowest since April on the daily chart, the four-hour chart showed a clear bullish divergence, with the BTC/USD pair hitting a 15-week low of $103,500, creating further lows.
This indicated that the pressure on the sell side was easing as traders increased their buying on the dip.
Macro settings have reinforced Bitcoin’s strength on higher time frames, with the two-week chart revealing multiple bullish flags that predict higher targets for BTC.
The first is a larger bull flag that formed between September 2023 and October 2024, as shown in the image below. The flag was verified during a 2024 US election rally and is still in use as of this writing. The goal for this flag is $192,000.
The second bull flag will be formed between September 2024 and December 2024 with a goal of $186,000.
The third is a smaller flag, which has been formed since March of this year. It will be confirmed if the price exceeds the flag’s upper limit of $115,000. Such a move would open the door for an increase towards the flag’s measurement target of $192,000, consistent with the target mentioned above.
A similar, albeit more bullish, outlook was shared by analyst Maggs, who said Bitcoin could continue to rise in an ascending channel on the weekly chart and peak in the $250,000 to $290,000 range.
Fellow analyst Axel Kibar said that Bitcoin’s target is more conservative, with an inverted head-and-shoulders pattern still in place with a measured target of $141,300.
weekly scale chart, $BTCUSD Holds neckline. The range is still 109K to 124K. pic.twitter.com/jZQwVO48Ch
— Aksel Kibar, CMT (@TechCharts) October 20, 2025
As reported by Cointelegraph, Bitcoin’s weekly close above $108,000 is a clear sign that the bulls are ready to regain a key support level and resume the uptrend.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should conduct their own research when making decisions.