The cryptocurrency market is buzzing with speculation as Bitcoin (BTC) currently trades around $91,500, following a notable decline. Analysts are identifying several bullish indicators that could propel the price towards $116,000 in the near future.
One of the critical factors under observation is a bullish divergence on the 4-hour chart, as highlighted by market analyst Javon Marks. Although Bitcoin has been making lower lows, the momentum oscillator shows a contrary trend, forming higher lows. This divergence often hints at a shift in market pressure from sellers to buyers, suggesting a potential reversal.
Currently, Bitcoin is testing a significant resistance level at $93,100. According to analyst Lennaert Snyder, the price must close above this threshold to validate the bullish setup. If successful, a move towards $95,600 could follow. Snyder notes that a return to the recent low of $88,900, coupled with a robust rebound, might indicate a market bottom.
Market volatility is expected to rise with the upcoming U.S. Non-Farm Payroll (NFP) data release, which could influence trading behavior. Additionally, Titan of Crypto has pointed to a recurring pattern reminiscent of the 2021-2022 cycle, where a bearish divergence marked a local top, followed by a hidden bullish divergence. Such a setup is emerging once again, as the price remains above a rising trend support.
On-chain data also supports the bullish outlook. The realized loss margin for Bitcoin has dipped to -16%, reflecting average losses among sellers. Historical data suggests that similar patterns often occur near market lows. Currently, the realized price for Bitcoin hovers around $114,000, indicating considerable unrealized losses among traders, which could set the stage for a recovery.
The broader macroeconomic context, including rising yields in Japan and issues within U.S. banking, is contributing to an atmosphere of caution in the market. However, should historical trends hold, Bitcoin may find a pathway to a significant recovery, potentially reaching the much-anticipated $116,000 mark.
