Key takeaways
BTC is up by more than 1% and is now trading above $111k.
The coin could rally towards $115k if the bullish trend continues.
Crypto market gains stability
The cryptocurrency market has been volatile since the start of the week, with Bitcoin recording a whipsaw action. However, the market has gained stability in the last 24 hours, with the major coins recording healthy gains.
Bitcoin, Ether, and XRP prices have shown signs of stabilization early today as market momentum steadies after recent volatility. The leading cryptocurrencies are holding above key levels, with momentum indicators suggesting building bullish pressure and potential signs of recovery in the near term.
Bitcoin eyes $115k amid early signs of recovery
The BTC/USD 4-hour chart remains bearish and efficient despite Bitcoin adding 1% to its value in the last 24 hours. The cryptocurrency Bitcoin price faced rejection from the 50-day Exponential Moving Average (EMA) at $113,329 earlier this week and dropped by nearly 3% on Wednesday.
However, it retested the 61.8% Fibonacci retracement level at $106,453 and recovered 2.33% on Thursday before rallying above $111k.
The Relative Strength Index (RSI) indicator at 58 points upward on the 4-hour chart suggests early signs of growing bullish momentum. The RSI has to stay above the neutral 50 for Bitcoin to embark on a sustained rally. Furthermore, the Moving Average Convergence Divergence (MACD) lines converged in the last 24hours to form a bullish crossover.
If the bullish trend continues, Bitcoin could extend its rally toward the 50-day EMA at $113,329. An extended bullish run would allow it to reclaim the ILQ level at $115,137.
However, if the bulls fail to build on this momentum and the daily candle closes below $106,453, Bitcoin could extend losses toward the October 10 swing low of $102,000 over the next few days.
The momentum is switching bullish, and this could see Bitcoin extend its current gains towards the $115k resistance.
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