Key takeaways
- BTC rose by less than 1% and is currently trading above $93,000.
- The coin could climb to $100,000 if the bullish recovery continues.
Bitcoin retakes $94K
The cryptocurrency market recovered after Monday’s drop, and Bitcoin briefly returned to the $94,000 level on Wednesday. The leading cryptocurrency by market capitalization rose by under 1% over the past 24 hours and is now trading above $93,000 per coin.
This positive move comes amid improving technical indicators across the board, signaling retail investors’ growing optimism about further gains in the near term.
In a note to Coinjournal, Nick Pakrin, an investment analyst and co-founder of The Coin Bureau, said Bitcoin posted an impressive rebound over the last 24 hours driven by a convergence of favorable news that finally tilted the balance toward the bulls (Vanguard allowing its clients to buy and sell crypto ETFs).
Additionally, Bank of America now recommends allocating 1%–4% of a portfolio to cryptocurrency, which could introduce up to $700 billion of additional liquidity into the asset class.
“As a result, Bitcoin has climbed to a key resistance zone between $93,000 and $95,000, which was also resistance back in April. If it breaks above this area, it will attempt to challenge the $100,000 mark again, with the 50-week simple moving average (SMA) at $102,000 as a key level to watch. Everything depends on whether U.S. buyers can sustain this momentum when the New York market opens this morning,” Pakrin added.
Bitcoin likely to clear $93K resistance
The 4-hour BTC/USD chart still shows a bearish structure overall, despite Bitcoin’s positive performance this week. Technical indicators have improved, and bulls now hold the upper hand.
An RSI reading of 61 indicates Bitcoin could move into overbought territory if buying pressure continues. MACD lines also flipped bullish on Tuesday, confirming another strong bullish bias.
If the bullish trend persists, BTC could surge to the next major resistance at $96,399 within the coming hours or days. However, if bulls fail to push higher, Bitcoin may retest liquidity slightly below $91,000.