Cryptocurrency Bitcoin climbs following a three-week slide, challenging crucial resistance level at $111,800
Bitcoin, the leading cryptocurrency, started the month of September on a positive note, opening at $110,800 on September 5, up 2.35% from the previous week's close. However, the digital asset took a dip in the following days, falling 4.59% on the previous week's close, finding support around $107,300.
The seasonal trend for Bitcoin shows that in six of the past eight years, the cryptocurrency ended September lower. The exceptions were the last two years, when gains of 3.91% and 7.29% were recorded. This year, the trend seems to be repeating, but the market remains volatile.
Analysts have identified $111,800 as the first major resistance for Bitcoin, with mounting expectations for U.S. Federal Reserve rate cuts potentially providing momentum for the cryptocurrency. If the upcoming data points reinforce the case for deeper rate cuts, Bitcoin could gain momentum, according to analysts.
The weaker dollar index (DXY) this week has also contributed to Bitcoin's performance, with the asset gaining 2.8% so far. U.S.-listed Bitcoin exchange-traded funds (ETFs) saw net inflows of $275 million this week, further indicating a positive sentiment towards Bitcoin.
It's worth noting that no specific analysts were named who announced that a sustainable movement above the 111,800 USD mark could bring further upward momentum to Bitcoin. The September Fed meeting is largely priced in, with one more jobs report and an inflation release due before the decision.
Bitcoin has been recovering from a mid-August high of $124,517. The cryptocurrency's performance this week stands out against this backdrop, indicating a resilient market despite the seasonal trend and the market's anticipation of the Fed's decision.
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