Bitcoin has recently been trading around $89,000 after briefly rising to $92,000 before falling again. Some analysts are optimistic about the potential for Bitcoin to reach $116,000, citing optimistic technical indicators.

Momentum Divergence Identified

Market analyst Javon Marks has highlighted a bullish divergence on Bitcoin’s 4-hour chart. While the asset is making lower lows, the momentum oscillator shows higher lows, indicating a possible shift from selling to buying pressure.

“$BTC continues to maintain a significant Regular Bull Divergence with momentum oscillators. The data suggests a recovery to $116,000+.” — JAVON⚡️MARKS

Currently, Bitcoin is struggling just below the $90,000 level, down about 1% for the day. Marks suggests that if momentum continues positively, Bitcoin could indeed move past $116,000, but it needs to break through critical resistance levels first.

Resistance at $93,100

Analyst Lennaert Snyder points out that Bitcoin has found support at $88,900 and is currently testing the $93,100 resistance level. He remains bearish unless prices close above this threshold, envisioning a possible rise to $95,600 thereafter.

“I prefer seeing a strong rebound after a return to the $88,900 lows,” Snyder remarked.

As volatility could increase with upcoming US NFP data, this is something for investors to watch closely. The comparison with past cycles is notable, especially with the analysis from EGRAG Crypto, who noted that Bitcoin is currently testing a significant moving average crucial for determining market trends.

“Holding the 21 EMA indicates that the bull market continues,” EGRAG Crypto stated.

On-Chain Loss Patterns

Bitcoin’s realized loss metric has dropped to -16%. Historically, such a decrease often emerges around market lows, indicating many traders are exiting at a loss. Furthermore, Bitcoin’s average realized price hovers around $114,000, hinting at a potential recovery in the near future, amid macroeconomic pressures.