After a period of volatility, Bitcoin buyers are regaining strength as the cryptocurrency finds support around $110K. Key on-chain signals have turned positive, indicating a potential for new weekly highs. Institutional investors are also showing increased interest, adding stability to Bitcoin’s support levels.
Bitcoin’s open interest has seen a positive turn as buying demand rises with recent dip-buying activities establishing strong support levels. Data from Coinglass reveals over $280 million in liquidations in the past 24 hours, with buyers accounting for the majority of closed positions. CryptoQuant’s on-chain data suggests that large-scale selling has not completely taken over the market yet.
Despite hitting an all-time high of $124K, Bitcoin is currently in a pullback phase. While larger whales are holding back, smaller holders with up to 10 BTC are steadily accumulating. Some traders remain cautious about the future of Bitcoin’s bull market, particularly after a drop in BTC/USD to its lowest level since early July.
Bitcoin’s open interest has increased by 0.97% to $85.5 billion, signaling higher trading activity and volatility. This could pave the way for Bitcoin to break above nearby resistance levels. Federal Reserve Chair Jerome Powell’s shift in tone towards a potential rate cut has initially boosted risk assets like Bitcoin, although investor excitement has waned as they await more inflation data.
Looking ahead, Bitcoin has built strong support around $110K, but has recently dropped below EMA trend lines. The current price stands at $112,434, showing a 1.65% decline in the last 24 hours. Buyers are expected to defend the $110,000-$112,000 zone, with a potential rise towards the 20-day EMA ($113,500) on the 4-hour chart if the support holds.
However, if Bitcoin fails to break above the 20-day EMA and drops below $110K, sellers may take control, leading to a potential decline to $105,000 and even $100,000. The RSI is attempting to recover above the midline, but further resistance could trigger a steep decline in the chart.
In conclusion, Bitcoin’s recent price movements and on-chain signals suggest a mix of bullish and bearish sentiment. The cryptocurrency’s ability to hold key support levels and break above resistance will determine its future price direction. Investors are advised to closely monitor market developments and adjust their strategies accordingly.