Bitcoin has made a significant move in the market by closing above the $116,000 resistance level, raising hopes of a new bullish trend toward the psychological milestone of $120,000. As of Wednesday, Bitcoin is trading at approximately $116,700. The recent price action follows several days spent hovering around the resistance level, but this upward shift has reignited bullish sentiment among traders.
Analysts note that if the $116,000 level maintains its strength as support, Bitcoin could catapult further towards $120,000. Currently, the Relative Strength Index (RSI) reads 60, indicating that bullish momentum is building. Additionally, the Moving Average Convergence Divergence (MACD) has shown a bullish crossover on September 6, further supporting the potential for an upward trajectory. However, should Bitcoin experience a correction and close below $116,000, it may face further declines toward its 50-day Exponential Moving Average, which sits at $113,674.
Meanwhile, Ethereum is displaying signs of strength by holding support near $4,488. After experiencing a brief surge of 5.68% last Friday, Ethereum has since retraced by 3.82% over four days but is currently trading slightly above the crucial support level at $4,538. Persistent support at $4,488 could pave the way for Ethereum to challenge its all-time high of $4,956. The RSI for Ethereum is currently at 55, suggesting slight bullish momentum, although MACD lines show convergence, indicating some indecisiveness in the market.
Ripple, having recently broken out of a descending wedge pattern, experienced a 2.5% rally following the breakout on September 11. However, it faced a subsequent decline of 3.4% leading up to Monday, where it retested the breakout point around $2.99. As of Wednesday, Ripple is trading near $3.04. If it manages to build on this momentum, there is room for it to rally towards resistance at $3.40. With an RSI of 54, Ripple shows slight bullish sentiment, consistent with its overall trend, although a correction could see the price slip toward its 50-day EMA at $2.94.
With the cryptocurrency market poised for potential volatility, all eyes are on the impending Federal Reserve rate decision announcement on Wednesday, which could influence these key digital assets. Traders remain vigilant as they anticipate the next decisive actions for Bitcoin, Ethereum, and Ripple.
