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Will Bitcoin Hit $114,000 Again? Here’s Why Investors Should Tread Carefully
Bitcoin (BTC) started the week on a positive note, recovering 6% from Friday’s drop. This upward movement is crucial as it aims to reclaim a significant area that could signal a continuation of its bullish trend. However, analysts are urging caution, suggesting that Bitcoin’s next significant move upward might not materialize until December.
After the market downturn towards the end of last week, Bitcoin has managed to bounce back to the $110,000 level, striving to establish this price point as a new support zone. It’s essential to note that since July, Bitcoin has been oscillating within the $108,000 to $120,000 price range. Just last week, Bitcoin slipped below this range for the second time, hitting a low of $103,500 on Friday. Fortunately, over the weekend, Bitcoin’s price stabilized, recovering to the $106,000-$108,000 range. Currently, Bitcoin has rebounded by 6.2% from its recent lows, possibly setting its sights on higher targets in the near term.
Analyst Crypto Kaleo emphasized that Bitcoin’s multi-year ascending trendline has held as support despite the recent bearish retest. This suggests a potential for a more bullish outlook among investors. Similarly, Sjuul from AltCryptoGems pointed out that the Fear and Greed Index still indicates fear in the market. Nonetheless, Bitcoin is holding onto that flipped resistance level around $108,000 and converting it into support. “Support is support, until it is not,” the analyst affirmed, urging investors to reconsider bearish positions.
Altcoin Sherpa also offered an optimistic view, stating that Bitcoin’s chart doesn’t appear too negative when viewed from a broader perspective. Bitcoin remains in the same multi-month price range and could challenge the $114,000-$115,000 area. However, the analyst cautioned that it might be premature to declare any sort of bullish reversal. The forecast suggests that the cryptocurrency could experience significant fluctuations over the next 6-8 weeks, likely ranging between $100,000 and $115,000, with hopes for a stronger performance in December.
Key Levels to Watch: $114,000-$116,000
Rekt Capital highlighted that as long as Bitcoin maintains its current price levels, it could move towards the critical $114,000 area for a trend continuation. This move would potentially enable Bitcoin to revisit its previous highs. To achieve this, Bitcoin must reclaim its 21-week Exponential Moving Average (EMA) as support, which was lost after closing below the $110,000 mark on Sunday. The 21-week EMA has historically provided support during pullbacks since late Q2.
Moreover, Rekt Capital explained that the current cycle has seen a pattern of downside deviations. Bitcoin has been closing weekly below key levels, preparing for a bearish retest before successfully reclaiming these levels as support for potential rallies. It’s important to note that this doesn’t guarantee a rejection at the 21-week EMA.
The analyst also discussed Bitcoin’s monthly range, where it has been consolidating since July. This consolidation has featured occasional wicks above and below the range high and low. Rekt Capital mentioned the potential for a Lower High to develop during this consolidation phase. The upcoming monthly close will provide clarity on whether this will turn into a resistance level.
In conclusion, Rekt Capital stated that a monthly close above the Lower High would invalidate the bearish setup. Conversely, if Bitcoin manages to close above the range high resistance, it would position itself for a range breakout, especially if a post-breakout retest of $116,000 occurs.
As of now, Bitcoin is trading at $110,850, reflecting a 2% increase over the daily timeframe. For those looking to stay informed on the latest trends in the crypto space, explore more at relevant text. Additionally, for trading opportunities, check out relevant text.
The current environment around Bitcoin emphasizes the importance of cautious optimism. Investors should remain vigilant as market dynamics continue to evolve.
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