Key Points
- Bitcoin briefly rose above $112 on Wednesday, pushing its value up by more than 1%.
- Traders are optimistic that BTC could soon reclaim the $117 resistance level.
BTC Breaks Above $111 as Market Sentiment Improves
The cryptocurrency market experienced turbulence earlier this week, with BTC slipping below the $110 mark on Monday. Sentiment has since improved, and Bitcoin briefly climbed above $112 on Wednesday.
At the time of writing, BTC is trading around $111,907 and could see further upside amid the growing market optimism. Bitcoin reached an all-time high in August but has struggled since. Analysts are now focused on September and on what the month could mean for major cryptocurrencies.
Ruslan Lienkha, Head of Markets at YouHodler, told CoinJournal via email that the primary macro catalysts for cryptocurrencies heading into September remain U.S. inflation, interest rate policy, and labor market data. The interaction of these factors will heavily shape overall risk sentiment and, in turn, the trajectory of both traditional and crypto markets.
Discussing how these events may affect the market, Lienkha added:
The recent sell-off reflects a combination of macro dynamics and long-term positioning by large holders. We are approaching the later stages of the current mid-cycle bull run, and early investors—particularly those who have held Bitcoin for more than a decade—are naturally being encouraged to realize significant gains. In contrast, newer whale entrants may be taking a longer-term view, preparing to ride through one or more future cycles. While whale activity contributes to market movements, the main drivers remain macro factors such as yield expectations and shifts in Federal Reserve policy.
BTC Eyes $117 Despite Market Volatility
The BTC/USD 4-hour chart shows a bearish tilt after several days of underperformance. Nevertheless, if momentum indicators improve, the market could reverse course quickly.
An RSI reading near 49 suggests Bitcoin is no longer under heavy selling pressure, and the MACD lines appear set to confirm a shift toward a bullish bias. If the recovery continues, BTC could push above the 4-hour trendline target of $113,850 and potentially reclaim the $117 resistance level.
However, momentum remains mixed and downside risk persists. If selling pressure resumes, Bitcoin could fall back below $110 and retest support around $107.