Bitcoin Rebounds Toward $115,000: How the Crypto Giant Defied Market Pessimism and Staged an Impressive Recovery

Bitcoin Approaches $115,000 as Market Shows Signs of Recovery

Bitcoin has regained its momentum, approaching the significant $115,000 mark after a challenging week for cryptocurrency investment products. The leading digital asset has bounced back impressively, showing a 2% increase over 24 hours, 1.7% over one week, and 4.3% over one month.

Last week was particularly difficult for the crypto market, with investment products experiencing over $800 million in outflows. Bitcoin was hit hardest, with its price dropping below the psychological barrier of $110,000. However, buyers have rallied, pushing the price back above this threshold and potentially setting the stage for a move toward $117,000.

Strong Performance Against Multiple Benchmarks

Bitcoin's resilience is evident in its performance metrics. The cryptocurrency remains firmly in the green over the past six months, with an impressive 36.4% gain. Additionally, the BTC/ETH pair has risen by 1.4% in a week and over 10% in a month, indicating that Bitcoin is not only recovering against the dollar but also outperforming Ethereum in recent weeks.

ETF Investors Remain Comfortable Despite Market Fluctuations

Despite Bitcoin finding a local top around $124,000 in August and experiencing limited inflows into spot ETFs in recent weeks, investors in Bitcoin ETFs don't appear to be panicking. According to data from Checkonchain, the average purchase price for ETF investors is approximately $80,000 (indicated by blue dotted lines in market charts).

This means these market participants remain in positive territory as long as Bitcoin trades above $80,000. While there have been several periods of decreased interest in spot ETFs throughout 2024, interest has consistently returned after these pauses. A drop below $80,000 might trigger panic among this investor group, but currently, the king of cryptocurrencies is trading well above this threshold.

Technical Analysis: Path to $117,000

With buyers stepping in below $110,000, Bitcoin has reclaimed the important $111,000 level. On the 4-hour chart, the price could use the bullish moving averages (EMA 9/EMA 18) as support to climb toward the next resistance level at $117,000.

The Relative Strength Index (RSI) has confirmed a bullish divergence, suggesting that short-term momentum is strengthening. However, if the price drops and loses the $111,000 support, Bitcoin could fall back to the local support at $106,000.

Significant Bitcoin Developments

• Bitcoin has managed to return above $110,000, and with the recovery above $111,000, the price could reach the $117,000 resistance level.
• A survey by CoinGecko reveals that 1 in 10 crypto investors has never purchased BTC, despite Bitcoin being the market leader.
• Raoul Pal, founder of Global Macro Investor, believes he can explain Bitcoin's recent decline and predicts BTC could return to its all-time high.
• Following IBIT's success, BlackRock aims to launch a new Bitcoin-focused ETF that could generate significant investor interest.

Despite seller pressure, Bitcoin continues to show resilience as it moves toward the $117,000 mark. While ETF inflows have been modest recently, investors have little reason to panic with Bitcoin trading well above their average purchase price. As the leading cryptocurrency rebounds, market participants are watching closely for the next potential breakout.