Bitcoin Gains Strength as It Breaks Key Technical Level
Bitcoin is showing signs of a comeback. It has reclaimed a crucial technical level, which often signals the start of short-term price rallies. According to CryptoQuant contributor İbrahim COŞAR, Bitcoin has moved back above its 50-day exponential moving average (EMA). This trend line helps spot major shifts in market momentum.
In the past, Bitcoin’s price has typically risen by 10% to 20% after falling below the 50-day EMA and then rising above it again. This pattern seems to be repeating. Bitcoin has closed above the 50-day EMA for three consecutive days, suggesting that bulls might potentially be taking control.
COŞAR believes this could lead to a move toward $120,000 in the short term. Though, he warns that geopolitical events involving the U.S., Israel, and iran could cause unexpected volatility. Currently, Bitcoin trades at $106,720, up 1.4% in the past 24 hours. Its a 7.8% recovery from its June 22 low of $98,974. Some analysts think geopolitical unrest could boost Bitcoin’s long-term appeal as a hedge against inflation and war risks. These conditions frequently enough favor Bitcoin as governments may increase spending and ease monetary policy.
Despite the Middle East tensions, investor interest remains strong. Spot Bitcoin exchange-traded funds have seen inflows for 11 days straight.Total net inflows in the past week reached $938 million, showing continued investor interest. On the technical side, Bitcoin is approaching $110,100. If it consolidates above $105,700–$106,000, indicating growing bullish momentum.The relative strength index is just above neutral, showing improving momentum.Short-term moving averages and the moving average convergence divergence are flashing “buy” signals.Bulls need to push it above $108,000–$110,000 for the rally to continue. A daily close above $110,000 could open the door to the $114,000–$120,000 range. If it breaks $108,000–$110,000, it could reach $114,000–$120,000.Support lies at $105,000, with stronger buying near $102,000 or $98,900.
- Bitcoin is approaching the upper band around $110,100.
- Geopolitical events could bring volatility.
- Spot Bitcoin ETFs saw $938 million in the past week.
