Bitcoin has made a significant rebound, reaching $112,000 after Wednesday’s Wall Street open, as traders are becoming increasingly bullish on the cryptocurrency’s price action. This surge has led to a retest of key resistance levels, with $112,000 being a crucial support level that has formed the bottom of a large patch of ask liquidity on exchange order books. According to data from CoinGlass, a substantial portion of this liquidity was taken out on the day, with the remainder extending to $114,000.
Popular trader CrypNuevo has highlighted the ongoing battle to reclaim Support 1, which could lead to a move back inside the range. With only two weeks left until the potential bullish risk-asset catalyst – an interest-rate cut by the US Federal Reserve on September 17 – the recent local lows at $107,270 are being viewed as a “false move.” Fellow trader BitBull has also noted a classic bounce at support, stating that “$BTC perfectly bounced back from its bull market support band,” which is a sign that bulls are still in control.
Despite many market participants remaining bearish across multiple timeframes, with some predicting a retest of $100,000 as soon as this week, the bull case for Bitcoin has been boosted by gold reaching new all-time highs. Trading firm QCP Capital believes that the odds are in Bitcoin’s favor going forward, citing the potential for two interest-rate cuts this year and the likelihood of a softer US dollar. As a result, gold and Bitcoin remain straightforward hedges in this macroeconomic backdrop.
According to data from CME Group’s FedWatch Tool, market expectations of an interest-rate cut in September are now over 95%. This has contributed to gold making fresh all-time highs, hitting $3,567 per ounce. The current price action of Bitcoin, combined with the macroeconomic uncertainty and the potential for interest-rate cuts, has led to a growing sense of optimism among traders and investors. As the cryptocurrency market continues to evolve, it is essential to stay informed and up-to-date on the latest developments and analysis.
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