Bitcoin Gains Strength as It breaks Key Technical Level
Bitcoin is showing signs of a comeback. It has reclaimed a crucial technical level that often signals short-term rallies. According to CryptoQuant’s İbrahim COŞAR, Bitcoin has moved above its 50-day exponential moving average (EMA). This trend line is vital for spotting major market shifts.
Historically, when Bitcoin falls below the 50-day EMA and then rises above it, the price tends to increase by 10% to 20%. this pattern seems to be happening again. The cryptocurrency has closed above the 50-day EMA for three consecutive days, suggesting bulls might potentially be taking control.
COŞAR predicts this could lead to a move toward $120,000. Though,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. This is a 7.8% recovery from its June 22 low of $98,974. Some analysts believe geopolitical unrest could boost Bitcoin’s long-term appeal as a hedge against inflation and war risks.
Despite the conflict, investor interest remains strong. Spot Bitcoin exchange-traded funds have seen inflows for 11 days straight. SoSoValue data shows total net inflows of $938 million in the past week.
Technically, Bitcoin is approaching the $110,100 upper band. If it consolidates above $105,700–$106,000, it could signal growing bullish momentum.Bulls need to push Bitcoin above the $108,000–$110,000 resistance for continued upside. A daily close above $110,000 could open the door to the $114,000–$120,000 range.
For more insights, check out the Bitcoin price analysis.
