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Bitcoin's price was nearing a key support area of around $100,000 in early September. Crypto market participants pay great attention to this threshold, as it can determine the cryptocurrency's future.
In the recent past, short-term holders reported that Bitcoin could hit a bottom of about $107,000, while Bitcoin traded above $108,000. The Relative Strength Index (RSI) shows divergences that some analysts view as a sign of a bullish reversal.
When prices drop below $100,000, the momentum may change to a bearish stage, and the bull market may end. Meanwhile, Bitcoin is resisting around $112,000. Breaking this hurdle would enhance the chances of long-term profits. These technical indicators and price points will determine Bitcoin's trend in the next few weeks.
The short-term holders have recently given positive indications of a potential price floor of about $107,000. This is supported by the fact that the Bitcoin price is trading above 108,000. The RSI divergence indicates buyers can move into the market provided Bitcoin trades above primary support levels.
Ostium Labs points out that the weekly support level of $98,000 is critical. A close below this level could drive the momentum to the bearish side. The monthly chart is yet to confirm a top as in 2021, but the lack of confirmation by the Awesome Oscillator should be viewed as a warning. Bitcoin should establish higher lows and rebound to continue the uptrend.
The BTC has a resistance of $112 000 on the daily chart. Any breakout above this point would support the notion of a good recovery. A failure to break above $112,000 may cause a test of support around $104,500 and the 200-day moving average, at about 101,300. The liquidation zone data indicate clusters of above $114,000 and almost $120,000 demand, which may alter price dynamics.
Analysts emphasise the psychological significance of the support level at $100,000. A fall below this can mark the beginning and end of the bull market. However, there is some optimism for a rebound with bullish RSI divergences on the short and weekly timeframes. Assuming these signals are not countered, Bitcoin may even shoot up to new heights in the next month or two.
Also Read: Crypto Prices Today: Bitcoin Price Holds $107,000, Ethereum at $4,472, XRP at $2.92
