Main points
- Bitcoin briefly rose above $112k on Wednesday, gaining over 1%.
- Traders are hopeful that BTC will soon retake the $117k resistance level.
BTC surpasses $111k as market outlook brightens
After a challenging start to the week, with BTC falling below $110k on Monday, market sentiment improved on Wednesday as Bitcoin surged past $112k.
Currently, BTC trades at $111,907 and could rise further with the positive market sentiment. August saw BTC reach a new all-time high, but it has faced challenges since then. Analysts are now turning their attention to September and its potential impact on the primary cryptocurrency.
In correspondence with Coinjournal, Ruslan Lienkha, head of markets at YouHodler, noted that the primary macro factors influencing crypto as we enter September include U.S. inflation, interest rate policies, and labor market statistics. The interplay of these elements will significantly affect overall risk sentiment, shaping both traditional and crypto markets.
Regarding the implications of these events on the market, Lienkha mentioned that,
The recent sell-off is a result of a mix of macro conditions and strategic positioning by large investors. We are approaching the latter stages of the current medium-term bullish cycle, prompting early investors, especially those holding Bitcoin for a decade or more, to realize substantial profits. Meanwhile, newer whale entrants are likely adopting a longer-term perspective, ready to endure one or multiple future cycles. Overall, while whale activity plays a role, macro factors like yields and shifting Federal Reserve expectations remain the primary influences.
BTC targets $117k amidst market fluctuations
The BTC/USD 4-hour chart shows a bearish trend due to Bitcoin’s recent struggles. However, there is potential for a turnaround as momentum indicators signal improvement.
An RSI of 49 indicates that BTC is no longer under significant selling pressure, while the MACD lines are poised to indicate a shift to a bullish stance. If the upward momentum continues, BTC might rise above the 4H TLQ at $113,850 before attempting to reclaim the $117k resistance level.
Nonetheless, bearish momentum persists, and BTC may encounter additional selling pressure. If that occurs, BTC might fall below $110k once more and re-test the $107k support level.
