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Bitcoin (BTC) has continued its ascent, skyrocketing to a three-week pinnacle of $115,500, driven by eased U.S. inflation figures and consistent inflows into Bitcoin ETFs. This surge coincided with growing investor confidence that the Federal Reserve might implement a 25 basis-point rate reduction next week, further enhancing risk appetite.
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As per CoinMarketCap data, Ethereum (ETH) also advanced, trading above $4,550, while altcoins such as Solana (SOL) and Dogecoin (DOGE) saw significant gains. Solana surged over 7% to $239, whereas Dogecoin increased by 5% to $0.26, indicating widespread strength throughout the cryptocurrency market.
BTC's price trends upward on the daily chart. Source: BTCUSD on Tradingview
Market evaluators attributed the upward shift to various macroeconomic stability and institutional investments. Bitcoin ETFs recorded over $928 million in inflows, reinforcing demand from retail and institutional investors alike.
Resistance Approaching $116K Raises Worries
Despite the optimistic momentum, Bitcoin encountered resistance above $116,000, where sellers curtailed further increases. Analysts pointed out that the rejection at this threshold highlights ongoing market prudence. It is believed that the rally signifies revitalized sentiment, yet the pushback above $116,000 indicates that sellers remain active.
Derivatives data reflected this apprehension. The weekly options expiration showed a put/call ratio of 1.3, indicating bearish bets slightly outnumber bullish positions. This pattern implies traders anticipate Bitcoin to stay within a certain range, likely fluctuating between $111,000 and $116,000.
In the meantime, CryptoQuant’s Bull Score Index revealed that most market indicators, such as the MVRV-Z score and stablecoin liquidity, have turned pessimistic. Analysts caution that an abrupt change in sentiment could prompt profit-taking and liquidations.
What Lies Ahead for Bitcoin (BTC)?
If Bitcoin manages to maintain a breakout beyond $116,000, analysts suggest the next objective could be $118,000, with substantial support around $113,700. Nonetheless, volatility remains a concern as traders await the Fed’s forthcoming interest rate decision.
Enhancing the optimistic outlook, Sean Ono Lennon, the son of music icon John Lennon, recently commended Bitcoin as a safeguard against “excessive money printing,” highlighting its attractiveness as a rare, decentralized asset during periods of economic instability.
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Currently, Bitcoin’s upward trend remains firm, but impending bearish indicators and resistance thresholds could challenge the robustness of the rally in the upcoming days, potentially resulting in another drop below $110,000.
Cover image from ChatGPT, BTCUSD on Tradingview
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