Key takeaways
- Bitcoin briefly climbed above $112k on Wednesday after gaining more than 1% in value.
- Traders are optimistic that BTC will soon reclaim the $117k resistance level.
BTC tops $111k as market sentiment improves
The cryptocurrency market started the week on shaky ground, with BTC falling below the $110k mark on Monday. Sentiment has since improved, and Bitcoin briefly pushed above $112k on Wednesday.
At the time of writing, BTC trades around $111,907 and could move higher amid the improving market mood. Bitcoin set a new all-time high in August but has struggled since. Analysts are now watching September closely to see how the leading cryptocurrency will perform this month.
In an email to CoinJournal, Ruslan Lienkha, Market Manager at YouHodler, said the main macro catalysts for crypto heading into September remain US inflation, interest rate policy, and labor market data. The interaction of these factors will largely shape overall risk sentiment and, in turn, the path for both traditional and crypto markets.
Discussing how these events may influence the market, Lienkha added,
The recent sell-off reflects a mix of macro conditions and long-term positioning by large holders. We are entering the later stages of the current mid-term bullish cycle, which naturally encourages early investors—especially those who have held Bitcoin for 10 years or more—to realize substantial profits. Newer whale actors, however, are more likely to adopt a longer horizon and be prepared to hold through one or more future cycles. Overall, while whale activity has contributed, the dominant driver remains macro factors such as yields and shifting expectations around Federal Reserve policy.
BTC eyes $117k despite market volatility
The BTC/USD 4-hour chart remains technically bearish after Bitcoin’s underperformance in recent days. Still, the market may be poised to reverse as momentum indicators begin to improve.
An RSI reading near 49 suggests BTC is no longer under heavy selling pressure, and MACD lines are set to confirm a shift toward a bullish bias. If upside momentum continues, BTC could climb above the 4H trend-line quadrant to $113,850 before targeting the $117k resistance level.
Momentum remains tilted to the downside, and BTC could face renewed selling pressure. If that occurs, the price may dip below $110k again and retest support near $107k.