Key Points:
- Bitcoin has gained traction from investors opting to “buy the dip” as prices hover around $110,000.
- Continued retests of support levels are capturing traders’ interest.
- Bulls have the potential for a positive RSI divergence given a strong closing day.
Bitcoin (BTC) kept pressure on crucial support thresholds this Thursday, as interest from buyers begins to recover.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
BTC price revisits sub-$110,000 scenario
Data from Cointelegraph Markets Pro and TradingView reported that BTC/USD tested levels below $110,000 on Bitstamp.
Trading liquidity around these prices is now under scrutiny, with local lows and a resistance point at $112,300 becoming focal hints.
BTC liquidation heatmap. Source: CoinGlass
“Now is the time to lock in again, it’s the fourth time testing this demand area,” trader Skew wrote about the current price action on X.
BTC/USD four-hour chart. Source: Skew/X
Rekt Capital points out that BTC/USD has now addressed an outstanding gap in the CME Bitcoin futures market.
“Bitcoin has completely filled its Weekly CME Gap between $109680 and $111310,” tweets Rekt Capital
Regarding the relative strength index (RSI), Rekt noted a developing bullish divergence, a possible indicator of upcoming price increases. “Price needs to finish the Daily Close like this to confirm it,” he elaborated.
BTC/USD one-day chart with RSI data. Source: Rekt Capital/X
Crypto sentiment highlighted by Ted Pillows, indicating an establishment of a local floor for Bitcoin’s price.
“Bitcoin has been consolidating post last week’s downturn.” he told his followers on X.
“Market sentiment is at an all-time low; panic selling is rampant, suggesting that this occurs at the bottom and not the top.”
Pillows presented a comparison of Bitcoin’s current price movements to those witnessed during the COVID-19 market collapse in March 2020.
Additionally, the Crypto Fear and Greed Index flipped to a state of “fear” this month, reaching six-month lows.
New Investor Interest in Bitcoin
Onchain analytics firm Glassnode shared optimistic news about accumulating investor trends.
- Entities holding between 1 BTC and 1,000 BTC are reportedly showing ‘strong accumulation’.
- Large holders in recent weeks showed signs of slowing their Bitcoin sales, hinting at renewed market confidence despite the recent downturn.
Bitcoin trend accumulation by investor cohort. Source: Glassnode/X
This article does not provide investment advice or recommendations. Every trade and investment involves risk, and readers should conduct their own research before making any decisions.
