Key takeout
- Bitcoin briefly surpassed $112K on Wednesday after adding more than 1% of its value.
- Traders are optimistic that BTC will soon regain resistance levels of $117,000.
BTC is over $111K as market sentiment improves
The cryptocurrency market has had a rough start to the week, with BTC below the $110,000 level on Monday. However, sentiment has improved, with Bitcoin temporarily rising above $1,12,000 on Wednesday.
At the time of pressing, BTC is trading at $111,907, which could quickly rise amid positive sentiment in the market. In August, BTC set up the newest of all time, but has been struggling ever since. Analysts are now looking to September, aiming to see what the month offers for major cryptocurrencies.
In an email with Coinjournal, Youhodler's market head Ruslan Lienkha said the key macro catalysts for crypto heading into September remain U.S. inflation, interest rate policies and labor market data. The interaction of these factors primarily forms an overall risk sentiment, and thus forms the trajectory of both traditional and crypto markets.
While discussing how these events will affect the market, Rienka stated that,
Recent sales reflect a combination of macro terms and long-term positioning by large holders. We are entering the late stages of the current medium-term bull cycle. This naturally encourages early investors, especially those who have held Bitcoin for over a decade, to realize important benefits. In contrast, more recent whale participants may adopt a long-term horizon where they are ready to hold one or more future cycles. Overall, whale activity has contributed, but the dominant driver remains a macro factor such as changes in yield and expectations regarding Federal Reserve policy.
BTC's eyes are $117k despite market volatility
The BTC/USD 4-hour chart is bearish and efficient thanks to the inadequate performance of Bitcoin recently. However, if momentum indicators improve, the market could quickly turn around.
The RSI of 49 indicates that BTC is no longer experiencing severe sales pressure, and the MACD line is set to check for a switch to bullish bias. If the recovery continues, BTC will be high to regain $1.17 million in resistance before rising the 4h TLQ at $113,850.
However, momentum remains bearish and BTC could face more sales pressure. In that case, BTC could again go below $110,000 and retest its support level of $107,000.
