Traders set sights on $117,000 as BTC stays above $110,000; explore the forecasts.

Key Points:

• Bitcoin briefly surpassed $112,000 on Wednesday after gaining over 1%.
• Traders display optimism that BTC will soon regain the resistance level of $117,000.

BTC Surpasses $111,000 as Market Sentiment Improves

The cryptocurrency market experienced a rough start to the week, with Bitcoin dipping below $110,000 on Monday. However, sentiment shifted positively, allowing Bitcoin to briefly exceed $112,000 on Wednesday.

At the time of this report, BTC is trading at $111,907, with prospects for an upward trajectory amid favorable market conditions. Earlier this month, BTC reached a historic high but has struggled since. Analysts are now eyeing September to determine what it may bring to the leading cryptocurrency.

In an email to CoinJournal, Ruslan Lienkha, head of markets at YouHodler, noted that key macroeconomic factors affecting cryptocurrencies in the lead-up to September include U.S. inflation, interest rate policies, and employment data. The interplay of these elements will largely shape the overall risk sentiment, impacting both traditional and cryptocurrency markets.

Lienkha commented, “The recent correction reflects a combination of macroeconomic conditions and long-term positioning by major holders. We are entering the final stages of the current mid-term bullish cycle, encouraging early investors, especially those holding Bitcoin for over a decade, to realize significant profits. Conversely, newer whales tend to adopt a more extended time horizon, prepared to hold through one or even multiple future cycles. Overall, while whale activity has contributed, the primary drivers remain macroeconomic factors such as yields and evolving expectations regarding Federal Reserve policy.”

BTC Aiming for $117,000 Despite Market Volatility

The BTC/USD 4-hour chart shows bearish sentiment as Bitcoin has underperformed in recent days. Nevertheless, market conditions may shift if momentum indicators improve.

The Relative Strength Index (RSI) at 49 indicates that BTC is no longer under significant selling pressure, while the MACD lines are expected to confirm a shift to a bullish bias. Should the recovery persist, BTC could surpass the $113,850 level on the 4-hour chart before attempting to reclaim the $117,000 resistance.

However, the bearish momentum persists, and BTC could face further selling pressure. If this occurs, BTC may fall below $110,000 and test the support level of $107,000 once again.