Bitcoin reclaims $111k, eyes $116k as bulls show strength; check forecast
October has generally been a bullish month for Bitcoin, but this year has been different. Bitcoin hit an all-time high of $126k earlier this month but has underperformed since then.
The leading cryptocurrency dropped below $105k on Friday but is now showing signs of a strong recovery. It is now trading above $111k and could rally towards the 4H ILQ at $116k in the near term.
BTC cuts monthly loss to 4%
Bitcoin began the new week on a strong note, adding over 4% to its value in the last 24 hours.
The positive performance comes after Bitcoin dropped below the $105k level on Friday as the price retested the lows of the October 17th crash.
The positive performance marked a shift in momentum as buyers returned to the market, with market participants expecting further pumping over the next few days.
The rally represents the third consecutive daily gain, confirming the continuation of the weekend rebound.
The surge above $111k pushed BTC above the descending channel resulting from last week’s decline. This move signals a potential shift following Bitcoin’s strong bearish pressure in recent weeks.
The breakout is also helping Bitcoin to recover its month-to-date performance, with its 30-day loss now down to 4% from last week’s 9% deficit.
Traders and investors are now focusing their attention on the upcoming Fed policy meeting.
The CPI data release later this week could provide insight into whether the Fed will cut the interest rate or leave it unchanged. However, with the US government shutdown still in play, the CPI data might be delayed.
Bitcoin eyes $116k as RSI signals momentum shift
The BTC/USD 4-hour chart is bearish and efficient despite Bitcoin adding 4% to its value in the last 24 hours.
The 20 and 100-day EMAs are now converging near $113,000, with the bulls expected to face some barrier around this resistance level.
If the bulls push the price to $114k, the next minor resistance level would be at the 50-day EMA near $114,400, which is also the monthly opening price.
Momentum indicators have switched to bullish, suggesting that the bulls are regaining control of the market. The 4H RSI of 61 shows strong buying pressure, but the daily RSI remains below the neutral 50.
If the daily RSI continues rising above the neutral levels, BTC could continue its upward momentum towards the $116k Inducement Liquidity (ILQ) at $116k over the next few hours or days.
However, failure to close the daily candle above $111k could see Bitcoin drop to the $108k region over the next few hours. The $105k low could serve as strong support in the near term.
The market momentum has temporarily shifted to bullish as Fed rate-cut expectations could help push Bitcoin’s price toward the $150,000 mark in the coming weeks and months.
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