After retesting the range lows, Bitcoin (BTC) has managed to close the week above a significant price level, temporarily averting a potential breakdown. Market analysts suggest that reclaiming the local highs this week could set Bitcoin on a path for another upward movement, though some warn of possible volatility in the days ahead.
Key Points
- Bitcoin is trading within the $108,250-$111,140 range, struggling to hold above $109,000.
- Analyst Rekt Capital highlighted potential bearish signals if the key support level is not maintained.
- Recently, BTC surged to the range high, closing the week around $111,137, avoiding a short-term breakdown.
- A breakthrough above $113,000 could pave the way for Bitcoin to target $116,000 or even $119,000.
- Upcoming CPI data may contribute to market volatility.
In-Depth Analysis
Bitcoin's recent performance has provided a brief respite for the market, with the price successfully closing above the critical support level of $109,000, indicating short-term recovery signs. Rekt Capital noted that BTC is forming an inverse head and shoulders pattern on the daily timeframe, with the $113,000 area acting as the neckline. A daily close above this level could set the stage for a price breakout, potentially triggering an upward move towards $116,000.Moreover, BTC has been consolidating within the macro monthly range, currently oscillating between $107,200 and $115,711. Having recently bounced off the range lows, the market seems poised to challenge the range highs. Analysts emphasize that if Bitcoin can maintain a closing price above $114,000 by the end of the week, it will establish a solid foundation for further upward movement.
Market Impact
The market's reaction to Bitcoin's rebound has been cautiously optimistic, but the upcoming U.S. Consumer Price Index (CPI) data may introduce uncertainty. Historical data indicates that the last three CPI releases led to price drops of 9%-11% for Bitcoin, particularly with a notable decline in August. Should the upcoming data result in similar sell-offs, the price could drop to the $100,000 mark.Investment Advice
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