The price of the leading cryptocurrency is consolidating near $113,000 amid rising volatility, noted analyst Axel Adler Jr. He believes that current market conditions and expectations of a rate cut by the Fed indicate preparation for a new rally.
The market expects a 25 bps rate cut, volatility has surged to 54%, and BTC is consolidating near $113K, holding above the 7D VWAP ($111.6K) and maintaining a bullish structure.
With volatility up 190%, the current setup looks like a pre-breakout phase. pic.twitter.com/9QvQcALX4N
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) October 29, 2025
According to the expert’s observations, bitcoin volatility has increased by 190% to reach 54%.
Adler noted that digital gold is holding above the seven-day volume-weighted average price (7D VWAP) at $111,600. According to him, this confirms the maintenance of a “bullish” structure on the chart.
The analyst also added that market participants expect a 25 basis point cut in the key rate.
Another Factor
CryptoQuant analyst known as Darkfost pointed to another bullish signal. According to him, the ratio of bitcoin reserves to stablecoins on the Binance exchange indicates growing buying activity.
✅The BTC Stablecoin reserve ratio on Binance Is flashing a buy signal.
Following the liquidation event on October 10th, the market was heavily shaken. The spillover into the derivatives markets also affected the spot market, with significant moves seen across multiple levels.… pic.twitter.com/Fw19uHu6hA
— Darkfost (@Darkfost_Coc) October 28, 2025
Darkfost noted that in this cycle, the signal appeared three times. Each time it was followed by a significant price increase:
- from $16,600 to $24,800 in January 2023;
- from $20,300 to $73,000 in March 2023;
- from $78,600 to $123,500 in March 2025.
The indicator signals an increase in stablecoin reserves on Binance relative to bitcoin reserves. This means that liquidity is accumulating on the exchange for cryptocurrency purchases, while its supply is decreasing. Such a situation creates conditions for a “supply shock” and an upward trend reversal.
The analyst emphasized that such a situation is atypical for the current market. Similar signals usually form during bearish phases or after deep corrections.
Cautious Optimism
Glassnode analysts assessed the situation more conservatively. They linked the price rebound from $107,000 to the resumption of inflows into US spot bitcoin-ETFs.
The bounce from $107k coincided with US Spot ETF netflows turning positive. However, inflows remain <1k BTC/day, significantly lower than >2.5k BTC/day seen at the start of major rallies this cycle.
Demand is recovering, but not at the intensity of recent rallies.
— glassnode (@glassnode) October 29, 2025
However, experts noted that daily inflows are less than 1,000 BTC. This is significantly lower than the 2,500 BTC observed at the start of major rallies this cycle. In their view, demand is recovering, but not with the intensity seen during recent price surges.
At the time of writing, the leading cryptocurrency is trading at around $112,700, having decreased by 1.5% over the day.
Earlier in October, an analyst under the pseudonym Crypto Dan predicted the end of the correction and an altcoin rally.