FXOpen
Over the weekend, the value of the leading cryptocurrency rose significantly. While the BTC/USD rate closed around $116.6k on Friday, today Bitcoin is trading above $120k and is nearing a potential new all-time high.
Since its August low, the price has increased by approximately 9%.
Why Bitcoin is Rising Today
From a fundamental perspective, this growth may be driven by:
→ Expectations ahead of tomorrow’s key US inflation data release (CPI report due at 15:30 GMT+3);
→ Donald Trump’s decision to allow pension and other funds to include cryptocurrencies and other alternative assets in their portfolios. Analysts believe the presidential decree could trigger a fresh wave of capital inflows into Bitcoin.
BTC/USD Technical Analysis
Last week, when analysing Bitcoin’s price, we extended the long-term blue ascending channel and:
→ Marked an intermediate descending channel with red lines;
→ Highlighted the importance of the $116k level.
The latest data shows that:
→ The $116k level has shifted from resistance to support (as indicated by the arrow);
→ The descending channel acted as a Bull Flag pattern — a temporary correction within the prevailing upward trend.
What’s Next for BTC/USD?
It is possible that the bullish momentum will be sufficient for the price to attempt surpassing its previous all-time high this week. However, such a move could push the market into an even more overbought state (the RSI indicator is already above 70).
So, BTC/USD could aim for the upper boundary of the blue channel, while forming short-term corrections along the way — for example, retesting the psychological $120k mark (recently breached by a strong bullish candle and potentially serving as important support going forward).
It is worth noting that analysts at the on-chain options research platform Dervie expect Bitcoin to reach $150,000 by year-end.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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