Bitcoin reclaim $110K, eyes a new weekly high: check forecast

The crypto market is experiencing an improved performance following a bearish start to the week. Bitcoin is up by over 2% and is now trading above $110K. With this rally, the total crypto market cap has increased to $3.77 trillion and could rally higher in the near term. BTC surges by 2.5% to hit $110K Bitcoin, the leading cryptocurrency by market cap, dropped to the $107k region to close the August monthly candle. The coin lost 6% of its value last month, with traders now wary of a red September ahead of crucial data like the FOMC minutes. The positive performance comes as Bitcoin ETF inflow rebounds following days of sell-off. Data obtained from The Block shows that spot Bitcoin ETFs registered their first weekly outflows since June, losing $126.7 million in the final week of August. The outflow saw the total Bitcoin ETF AUM decline to $139.95 billion, about 6.5% of Bitcoin’s market cap. However, the inflow has now resumed, with 3,018 BTC added on Monday. The inflow could indicate that institutions are buying into weakness. As usual, BlackRock’s IBIT fund led the pack, with Fidelity’s FBTC and ARK’s ARKB also recording excellent gains. Bitcoin’s underperformance can be linked to the outflow in spot Bitcoin ETFs. In August, spot Bitcoin ETFs saw a total outflow of $751 million, a stark reversal from July’s $6 billion in inflows. Institutional demand could be the key to pushing Bitcoin’s price higher this month, with investors focusing on the Fed’s rate cut later this month. A rate cut could pave the way for Bitcoin and other leading altcoins to rally higher. BTC eyes $113K resistance level as bulls push higher The BTC/USD 4-hour chart remains bearish and efficient despite Bitcoin adding 2% to its value in the last 24 hours. However, the momentum indicators are improving, suggesting that buyers are starting to enter the market. The MACD lines are close to crossing into the positive territory, suggesting a fading bearish momentum. The RSI of 56 also shows that buying pressure is resuming, and this could push BTC’s price higher in the near term. At press time, BTC is trading at $110,319. If the recovery continues, Bitcoin could rally towards the first major resistance level and the TLQ at $113,200. An extended bullish run in the coming hours or days would allow BTC to reclaim the August 22 high of $117,399. However, the general market condition remains bearish following last month’s poor performance. If the correction resumes, Bitcoin could retest the $107k low once again. Failure to defend this low could see Bitcoin give way to the next daily support at $105,328. The post Bitcoin reclaim $110K, eyes a new weekly high: check forecast appeared first on Invezz