TLDR
- Bitcoin formed a double-bottom pattern with support at $108,650 and neckline at $117,875
- Technical analysis points to a measured price target of $127,000
- Strategy Inc. purchased 196 BTC at $113,048 during the recent dip
- US government shutdown and NFP jobs data could drive volatility this week
- Exchange outflows and cooling funding rates suggest accumulation phase
Bitcoin price has climbed to $114,000 after establishing a bullish double-bottom chart pattern. The cryptocurrency trades with a daily volume of $62.2 billion, gaining 3.62% in the past 24 hours.
The technical formation shows two distinct lows at $108,650 with a neckline at $117,875. This pattern typically indicates a trend reversal and points to upside potential.
Trading analysts calculate the price target by measuring the distance from the low to the neckline, then projecting that distance upward. This method suggests Bitcoin could reach $127,000 if the pattern plays out.
The cryptocurrency has broken above both its 50-day and 100-day Exponential Moving Averages. The Relative Strength Index and MACD indicators have turned positive, supporting the bullish outlook.
Institutional Buying Continues
Michael Saylor’s Strategy Inc. added 196 BTC worth $22.1 million at an average price of $113,048. The company now holds 640,031 Bitcoin valued at over $47 billion.
Strategy’s stock fell to $300.7, a six-month low, despite the firm’s continued accumulation strategy. The stock remains up 96% over the past year.
On-chain metrics show Bitcoin flowing off exchanges at an increasing rate. This typically indicates investors are moving coins into cold storage for long-term holding.
Funding rates have decreased across major exchanges. Lower funding rates suggest reduced speculative leverage, which often precedes sustainable price rallies.
Government Shutdown Risk
The US government faces potential shutdown as Congressional negotiations stall. Republicans and Democrats remain divided on spending priorities and policy implementation.
A shutdown could impact economic activity since the government represents one of the largest spending entities. This scenario might prompt the Federal Reserve to maintain its rate-cutting cycle.
Mark Zandi stated that recession risks remain elevated despite recent economic data. He noted that growth depends heavily on AI sector spending and wealthy consumers.
Jobs Data on Deck
The Bureau of Labor Statistics will release non-farm payrolls data Friday. The report will provide insight into labor market health and inflation trends.
Federal Reserve officials like Beth Hammack have expressed concerns about persistent inflation. She advocates for cautious approach to further interest rate cuts.
Strong jobs numbers could delay additional Fed rate cuts, potentially pressuring Bitcoin. Weak data might accelerate easing expectations, benefiting crypto markets.
Traders are monitoring a CME gap at $111,300 that could attract prices lower. However, historical data shows these gaps often fill quickly before resuming uptrends.
A sustained close above $115,000 would confirm bullish momentum. Next resistance levels appear at $116,150 and $117,850.
The RSI indicator reads 83, showing overbought conditions. Despite this reading, strong momentum often persists during trending markets.
Bitcoin’s surge mirrors recent strength in gold prices. The precious metal has reached record highs on institutional demand.
Downside support sits at $113,000 and $112,600. A break below these levels could test $110,350 and $108,700.
