Key takeaways
- BTC is up by less than 1% and is currently trading above $93k.
- The coin could rally towards $100k if the bullish recovery continues.
Bitcoin reclaims $94k
The cryptocurrency market has recovered from the dip recorded on Monday, with Bitcoin briefly reclaiming the $94k level on Wednesday. The leading cryptocurrency by market cap is up by less than 1% in the last 24 hours and is now trading above $93k per coin.
The positive performance comes as technical indicators improve across the board, suggesting that retail investors are optimistic about a rally in the near term.
In an email to Coinjournal, Nic Puckrin, investment analyst and co-founder of The Coin Bureau, pointed out that Bitcoin has staged a remarkable recovery over the past 24 hours, driven by a perfect storm of good news that has finally tipped the balance over in favor of the bulls (Vanguard allowing its clients to buy and sell crypto ETFs).
Furthermore, Bank of America is now recommending a 1%-4% portfolio allocation to crypto, which could bring up to $700 billion in extra liquidity into this asset.
“As a result, Bitcoin has shot up to a key resistance level between $93,000 and $95,000, which also acted as a resistance zone back in April. If it pushes through this, it will attempt to breach the $100,000 threshold again, with the 50-week simple moving average (SMA) at $102,000 a key level to watch. It all depends on whether US buyers continue this momentum when the New York market opens this morning,” Puckrin added.
Bitcoin looks to overcome the $93k resistance
The BTC/USD 4-hour chart is bearish and efficient despite Bitcoin performing positively this week. The technical indicators have improved, with the bulls currently in control.
The RSI of 61 shows that Bitcoin could be heading into the overbought territory if the buying pressure continues. The MACD lines also switched bullish on Tuesday, confirming another strong bullish bias.
If the bullish trend persists, BTC could surge towards the next major resistance level at $96,399 over the next few hours or days. However, if the bulls fail to push higher. Bitcoin could retest the liquidity level just below $91k.
