Bitcoin has surged above the $117,500 resistance mark, reclaiming momentum and setting sights on retesting its all-time high of $124,474. This upward swing comes after Bitcoin closed out September with a gain exceeding 5%. The market’s bullish sentiment has continued into the start of the new month, creating optimism among traders and investors alike.
Historical data from CoinGlass indicates that a strong close in September typically results in substantial gains during the fourth quarter, with average returns exceeding 53%. If past trends hold true this season, Bitcoin could potentially soar to around $170,000 by year-end.
Market analysts are closely monitoring Bitcoin’s price action, with some suggesting that it could closely mimic gold’s robust bullish performance. Crypto analyst Ted Pillows noted that Bitcoin tends to follow gold’s trends with an approximate eight-week lag, and based on this pattern, he expects Q4 to be particularly favorable for BTC.
The current market dynamics show strength in Bitcoin, as evidenced by its recent price behavior. This week, Bitcoin managed to close above significant moving averages, and the breakout above the $117,500 level has been viewed positively. The 20-day exponential moving average currently sits at $113,527, which points to growing bullish momentum, as reflected in the relative strength index (RSI) being above 61.
Potential Levels to Watch for Bitcoin
If Bitcoin sustains momentum above the current resistance, it could challenge the all-time high of $124,474. However, sellers are anticipated to strongly defend this threshold. A successful breach could propel Bitcoin to around $141,948. Conversely, a downturn below the $107,000 support could alter the bullish scenario and suggest a potential correction.
Altcoins Reacting to Bitcoin’s Lead
As Bitcoin rallies, several altcoins are also beginning to show signs of recovery. Ethereum (ETH) has climbed above its 20-day EMA of $4,262, indicating a waning of selling pressure. A crucial resistance level is being monitored: if Ethereum can surpass this line, it may eye its previous high of $4,957. However, should it falter at the resistance, a drop below the $3,745 support could signal a bearish trend.
XRP has bounced off its support level at $2.69, reaching a crucial juncture at the moving averages. Sellers are poised to maintain the price below a descending triangle formation, while a breakthrough above the downtrend line could spark a rally toward $3.20 and potentially $3.38.
BNB is experiencing fluctuations, having fallen from $1,036 but holding above its 20-day EMA of $976. If the price rebounds from here, there’s potential for it to challenge $1,036 again, and possibly rise toward $1,173. A decline below $934, however, may signal deeper corrections.
For Solana (SOL), the recent recovery has encountered resistance at the 20-day EMA. Sellers are attempting to limit further gains, but bullish efforts remain evident as investors watch closely for additional market developments.
Overall, Bitcoin’s resurgence above $118K is drawing attention not just for its own potential but for the ripple effects it may have across the altcoin market. As the crypto landscape evolves, traders and investors alike will be keenly observing price movements in the coming days.
