Bitcoin Price Movements: Key Rejections and Bullish Signals

Bitcoin recently faced a significant rejection at the $107,000 mark, with traders noting the failure to maintain this crucial resistance level. According to Cointelegraph, after peaking at $107,465, Bitcoin subsequently struggled to uphold these gains, causing concerns about a potential double top formation on the hourly chart. Analysts are closely watching support levels, with $104,000 being the next critical threshold as the market’s volatility continues. Trader Michael van de Poppe highlighted the importance of whether Bitcoin can hold above $103,000 and pointed out that if it fails, a drop to around $90,000 could occur.

On the bullish side, there are emerging signals indicating a reversal could be near. Cointelegraph reports that Bitcoin's apparent demand has risen to its highest levels since July, suggesting that investors are adopting a risk-on approach as macroeconomic conditions improve. Notably, Bitcoin's apparent demand metric, which measures mining issuance minus supply inactive for over a year, has shifted to a positive outlook, indicating increased buyer engagement. Additionally, spot trading volume surged by 23% to $14.1 billion over the past week, signaling growing speculative activity.

Traders believe that reclaiming the $110,000 mark as support is essential for a sustained recovery. Swissblock noted that if Bitcoin can defend this critical zone, it will pave the way for further upward momentum. Analyst Michael van de Poppe also stated that breaking past $110,000 could lead to a rally towards the all-time high of $126,000, especially given the recent optimism surrounding the end of the US government shutdown. The funding bill's passage in the Senate has fueled excitement in the market, with Bitcoin trending on social media as a result.

Despite the bullish sentiment, caution remains due to the ongoing selling pressure from long-term holders. QCP Capital emphasized that until this selling pressure eases, a range-bound market may persist in the medium term. They highlighted that bullish momentum requires favorable macroeconomic conditions, and a sustained recovery would be contingent upon stabilizing ETF inflows.

As Bitcoin navigates these critical price levels, the market remains highly dynamic, with traders on alert for fluctuations as they look for confirmation of bullish reversals or further downturns. With the potential for significant price movements in the coming days, investors are advised to watch these key support and resistance levels closely as they could dictate the next phase of Bitcoin's market trajectory.