Important points
- BTC is up less than 1% and is currently trading above $93,000.
- If the bullish recovery continues, the coin could rise towards $100,000.
Bitcoin regains $94,000
Cryptocurrency markets have recovered from the decline recorded on Monday, with Bitcoin briefly regaining the $94,000 level on Wednesday. The top cryptocurrency by market capitalization is up less than 1% in the past 24 hours and is currently trading above $93,000 per coin.
The strong performance was driven by improvements in technical indicators across the board, suggesting that retail investors are optimistic about short-term upside.
Coin Bureau co-founder and investment analyst Nick Pucklin noted in an email to CoinJournal that Bitcoin has seen an impressive recovery over the past 24 hours. Fueled by a perfect storm of positive news, the balance finally tipped in favor of the bulls (Vanguard allows customers to buy and sell crypto ETFs).
Additionally, Bank of America currently recommends a 1% to 4% allocation to cryptocurrencies in portfolios, which could bring up to $700 billion in additional liquidity to this asset.
“As a result, Bitcoin has surged to the key resistance level between $93,000 and $95,000, which also acted as a resistance zone in April. A breakout of this would lead to a breakout of the $102,000 50-week simple moving average (S MA) will be the key level to watch and will try to break through the $100,000 threshold again. Everything will depend on whether US buyers continue this momentum as the New York market opens this morning. Pucklin added.
Bitcoin looks set to overcome $93,000 resistance
Despite Bitcoin’s performance this week, the 4-hour chart of BTC/USD is bearish and efficient. Technical indicators are improving and the bulls are currently in control.
The RSI of 61 indicates that Bitcoin could head into overbought territory if buying pressure continues. The MACD line also switched to a bullish direction on Tuesday, once again confirming a strong bullish bias.
If this bullish trend continues, BTC could surge towards the next major resistance level at $96,399 in the coming hours or days. However, if the bulls fail to move higher. Bitcoin may retry liquidity levels just below $91,000.