The cryptocurrency market saw remarkable performance this week, led by Bitcoin’s (BTC) impressive surge. Recovering from a Monday low of $114K, BTC is currently trading above $117K, signaling bullish momentum.
Key Drivers Behind Bitcoin’s Rally
Bitcoin’s rebound is largely attributed to macroeconomic influences, particularly the Federal Reserve’s rate cut announcement on Wednesday. According to Sergei Gorev, Head of Risk at YouHodler, this move brings optimism to financial markets, spurring liquidity. “Cheaper money pushes quotes higher; we’re likely to witness new historical prices for Bitcoin soon,” Gorev added.
Furthermore, the approval of new altcoin ETFs is anticipated to draw further inflows into the cryptocurrency market, creating ripple effects on other digital assets.
Technical Outlook: BTC/USD
On the technical side, Bitcoin’s immediate support hovered around $116K earlier in the week before breaking past the $117K level. The 4-hour chart exhibits clear bullish trends, with BTC moving above its 50-day Exponential Moving Average (EMA) as of September 10.
Key indicators like the Relative Strength Index (RSI), standing at 57, suggest that bulls maintain control. Simultaneously, the Moving Average Convergence Divergence (MACD) shows a bullish crossover since September 6, reinforcing optimism among traders.
Could Bitcoin Hit $120K?
Positive trends and growing momentum indicate potential gains in the near term. If the current rally continues, BTC might push past the psychological barrier of $120K. Analysts project that an extended bullish phase could pave the way for Bitcoin to reach a new all-time high of $125K.
However, traders should remain cautious. A market correction below the $116K support might prompt a retreat toward $113,924—a critical zone to watch.
How To Invest in Bitcoin
If you’re considering entering the cryptocurrency market during this pivotal period, platforms like eToro offer a user-friendly interface for buying and trading Bitcoin. With multiple deposit options and access to other top-performing digital assets, eToro makes crypto investing more accessible for all.
Final Thoughts
Bitcoin’s recent performance highlights the ongoing opportunities within the cryptocurrency space. Whether it breaks through $120K or faces temporary pullbacks, BTC remains a staple asset in the evolving financial landscape.
