I've been watching Bitcoin like a hawk these past few days, and I'm honestly impressed with how it's bouncing back. After that nasty 5% correction last week that had me sweating bullets, BTC is now trading comfortably above $110,000. But let me tell you, this recovery didn't come without some serious casualties.
Looking at the on-chain data, it's pretty damn telling - long liquidations outpaced shorts by around $7 million. That's a bloodbath for overconfident bulls who got greedy. But here's my take: this flush-out might be exactly what the market needed. All those overleveraged positions getting wiped out could be setting us up for a healthier climb.
What's really caught my eye is the bullish RSI divergence on the 4-hour chart. While Bitcoin made a lower low on Monday, the RSI showed higher highs - classic sign of a potential trend reversal. I've seen this pattern play out enough times to get excited about it.
The market's been in extreme fear territory too - the Crypto Fear and Greed Index dropped to a four-month low on Saturday. Typical retail behavior, panicking at the first sign of trouble! But it's already recovered to 49 (neutral) by Tuesday, which tells me the worst might be behind us.
Let's be real though - this week's macro releases will make or break this recovery. The ISM Manufacturing PMI, JOLTS Job Openings, ADP employment data, and Friday's NFP report will all influence the Fed's rate-cut decisions. And we all know how Bitcoin reacts to Fed news - it's like a puppet on Jerome Powell's strings sometimes.
Technically, BTC is testing its 50-period EMA on the 4-hour chart at $110,424. If we close above that, I'm looking at $117,429 as the next target. On the daily chart, the 100-day EMA at $110,697 is the level to watch - break above that, and we could see $116,000 soon.
But if this rally fails and we can't hold the 100-day EMA, expect a drop toward $105,573. The market never gives anything away for free.
Between the clearing out of overleveraged longs and the technical signals flashing green, I'm cautiously optimistic. Just don't get caught holding the bag if those economic reports come in hotter than expected - the Fed's rate decisions still pull Bitcoin's strings more than most traders want to admit.
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Bitcoin Price Forecast: BTC Recovery Strengthens as RSI Shows Bullish Signs
I've been watching Bitcoin like a hawk these past few days, and I'm honestly impressed with how it's bouncing back. After that nasty 5% correction last week that had me sweating bullets, BTC is now trading comfortably above $110,000. But let me tell you, this recovery didn't come without some serious casualties.
Looking at the on-chain data, it's pretty damn telling - long liquidations outpaced shorts by around $7 million. That's a bloodbath for overconfident bulls who got greedy. But here's my take: this flush-out might be exactly what the market needed. All those overleveraged positions getting wiped out could be setting us up for a healthier climb.
What's really caught my eye is the bullish RSI divergence on the 4-hour chart. While Bitcoin made a lower low on Monday, the RSI showed higher highs - classic sign of a potential trend reversal. I've seen this pattern play out enough times to get excited about it.
The market's been in extreme fear territory too - the Crypto Fear and Greed Index dropped to a four-month low on Saturday. Typical retail behavior, panicking at the first sign of trouble! But it's already recovered to 49 (neutral) by Tuesday, which tells me the worst might be behind us.
Let's be real though - this week's macro releases will make or break this recovery. The ISM Manufacturing PMI, JOLTS Job Openings, ADP employment data, and Friday's NFP report will all influence the Fed's rate-cut decisions. And we all know how Bitcoin reacts to Fed news - it's like a puppet on Jerome Powell's strings sometimes.
Technically, BTC is testing its 50-period EMA on the 4-hour chart at $110,424. If we close above that, I'm looking at $117,429 as the next target. On the daily chart, the 100-day EMA at $110,697 is the level to watch - break above that, and we could see $116,000 soon.
But if this rally fails and we can't hold the 100-day EMA, expect a drop toward $105,573. The market never gives anything away for free.
Between the clearing out of overleveraged longs and the technical signals flashing green, I'm cautiously optimistic. Just don't get caught holding the bag if those economic reports come in hotter than expected - the Fed's rate decisions still pull Bitcoin's strings more than most traders want to admit.