Bitcoin's Bulls Aiming for $137K, but Condition is Maintaining Solid Support
The cryptocurrency market is experiencing a surge in total capitalization, indicating a market-wide momentum that could potentially lead to upside rotations in Ethereum and altcoins. One of the key drivers of this recovery is the Bitcoin market, which is currently experiencing the strongest and longest build-up of the entire cycle.
Bitcoin, the largest cryptocurrency by market capitalization, has shown signs of forming a stable base after climbing 3% last week. The current trading price of Bitcoin is above $117,240, and the critical support level for Bitcoin is now considered to be $115,440, according to crypto analyst Ali Martinez.
This support level now serves as a decisive pivot point for the market's next major move. If Bitcoin holds above this level, momentum could build towards the next upside target at $137,300. On the other hand, a breakdown below the $115,440 support level could expose Bitcoin to deeper downside pressure, potentially bringing $93,600 into focus as the next key support.
The emergence of this critical support level was revealed by Bitcoin's Pricing Bands. The stability of this level is significant, as it could signal the end of the September seasonal drag, which has traditionally been challenging for Bitcoin. September, however, may be nearing its end.
The Bitfinex Alpha report and various market analysts have highlighted Bitcoin's potential for a breakout into Q4. The market conditions position Bitcoin for a potential breakout, according to the report, with the emergence of a stable base and the signs of strong investor participation.
This strong investor participation is backed by on-chain buy pressure and Cost Basis Distribution (CBD) metrics. The recent short-term volatility in Bitcoin was also found by Swissblock to be repricing risk, not a market breakdown. Testing the lower end of Bitcoin's current range remains within normal volatility expectations and could be the final downside move before the next major leg higher, according to Swissblock.
The emergence of a stable base for Bitcoin could also be a sign of rising liquidity and strong network growth, two bullish signals that support the outlook for a sharp advance in Bitcoin. Historically, these factors have led to sharp advances in Bitcoin's price.
As sidelined cash continues to re-enter the market at lower levels, fueling further Bitcoin rallies, the potential for a Q4 breakout and a sharp advance in Bitcoin's price looks increasingly promising. However, it's important to note that while the outlook is positive, it's always crucial for investors to conduct their own research and make informed decisions.
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