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Is Bitcoin’s Recovery Sparking a New Bull Run? Here’s Why It Might!
In the latest bitcoin news, Bitcoin has successfully found support near the $108,680 level, initiating a recovery wave that many investors are closely monitoring. Currently trading above $111,000, Bitcoin is encountering resistance around $112,500. This upward momentum follows a period of consolidation, indicating that BTC may be gearing up for a more robust bullish trend.
Bitcoin’s recovery began after it remained above the $108,500 zone. The cryptocurrency managed to break through the $109,500 resistance, marking a significant milestone in its journey back upward. Additionally, BTC has surpassed the 50% Fibonacci retracement level of the recent downward movement, which spanned from a high of $113,940 to the recent low of $108,680. This technical achievement is often seen as a bullish signal.
A notable development occurred when Bitcoin broke above a bearish trend line with resistance at $109,600, according to the hourly chart of the BTC/USD pair from Kraken. The bullish sentiment was palpable as the price surged past $112,000 before encountering selling pressure. Nevertheless, Bitcoin is now trading above the $111,500 mark and the 100-hourly simple moving average, reinforcing the bullish case.
Investors should be aware that immediate resistance lies just above at the $112,400 level. The pivotal resistance zone remains at $112,500, and if Bitcoin can clear this barrier, it may open the floodgates for further upward movement. The next potential resistance could be at $113,700, aligning with the 76.4% Fibonacci retracement level of the previous downward wave.
If Bitcoin manages to close above $112,700, it could accelerate towards the $113,500 resistance level. A sustained rally could even push the price to test the crucial $114,500 level. The next significant barrier for bullish momentum might be positioned at $115,000, drawing the attention of investors.
However, it is essential to consider the downside risks as well. If Bitcoin fails to break above the critical $112,500 resistance zone, the cryptocurrency could face a fresh decline. Immediate support is found near the $111,300 level, while the first major support is close to $110,500. Should the selling pressure intensify, the next support zone is around $109,500, and further losses could lead Bitcoin toward the $108,800 support in the near term. The main support level is situated at $107,500, and any drop below this could complicate Bitcoin’s recovery prospects.
Technical indicators are showing promising signs as well. The hourly MACD is gaining momentum in the bullish zone, suggesting that the upward movement may have further room to run. Furthermore, the hourly Relative Strength Index (RSI) for BTC/USD has moved above the critical 50 level, indicating increasing bullish momentum.
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In conclusion, Bitcoin’s current recovery could potentially set the stage for a renewed bullish trend. However, close attention must be paid to key resistance and support levels, as they will dictate the cryptocurrency’s next moves. As always, investors should tread carefully and consider market conditions before making significant moves.
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