Key Takeaways
- Bitcoin (BTC) has seen a price increase of over 1%, currently trading above $111,000.
- If the current positive trend persists, BTC could advance towards the $115,000 mark.
- The broader cryptocurrency market is showing signs of stabilization after a period of volatility.
Crypto Market Shows Signs of Recovery
The cryptocurrency market experienced significant fluctuations earlier in the week, with notable volatility impacting Bitcoin’s price. However, recent trading sessions have brought a sense of stability, as major digital assets are now posting healthy gains.
Established cryptocurrencies such as Bitcoin, Ethereum, and XRP are demonstrating stabilization today, coinciding with steadier market momentum. These leading assets are holding firm above critical price levels, and momentum indicators suggest strengthening bullish pressure, hinting at a potential near-term recovery.
Bitcoin Aims for $115,000 Amidst Recovering Momentum
Despite a 1% increase in value over the past 24 hours, the BTC/USD 4-hour chart technically remains in a bearish yet efficient state. Earlier this week, Bitcoin encountered resistance at the 50-day Exponential Moving Average (EMA), situated around $113,329, which led to a nearly 3% price drop on Wednesday.
Following this dip, Bitcoin retested the 61.8% Fibonacci retracement level at approximately $106,453. On Thursday, the cryptocurrency showed resilience by recovering 2.33% and subsequently rallied above the $111,000 threshold.
📊 The Relative Strength Index (RSI) on the 4-hour chart is currently at 58 and trending upwards, indicating the emergence of bullish momentum. For Bitcoin to sustain an upward trajectory, the RSI needs to remain above the neutral 50 mark.
⚡ Additionally, the Moving Average Convergence Divergence (MACD) lines have converged within the last 24 hours, forming a bullish crossover, which further supports the positive outlook.
If this bullish trend gains further traction, Bitcoin has the potential to extend its rally towards the 50-day EMA resistance at $113,329. A sustained upward movement could see BTC re-establish a position above the ILQ level, targeting $115,137.
📍 Conversely, if the bullish momentum falters and the daily candle closes below the $106,453 support level, Bitcoin could face renewed downward pressure. In such a scenario, the asset might see extended losses, potentially falling towards the October 10 swing low of $102,000 in the coming days.
⚡ The current market sentiment suggests a shift towards bullish momentum, which could empower Bitcoin to build upon its recent gains and challenge the $115,000 resistance level.
Expert Summary
Bitcoin has surpassed $111,000 after recovering from earlier weekly declines. Technical indicators like the RSI and MACD suggest growing bullish momentum, positioning BTC to potentially test the $115,000 resistance if the trend continues. However, a close below $106,453 could signal a return to lower price levels.