Bitcoin Traders Celebrate As BTC Price Surpasses $57K

Traders are optimistic following Bitcoin's weekly close above a critical support level, interpreting it as a positive sign for the cryptocurrency.

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On September 9, Bitcoin's price surged to approximately $57,500, marking a significant rebound from what was perceived as an exaggerated market reaction to August's payroll report. This recent price movement is noteworthy because it represents a gain of around 8.3% from the weekly low of $52,546. The substantial rally and the recovery from earlier losses have led many market participants to speculate that Bitcoin might have reached its bottom. The shift in Bitcoin's price direction could be indicative of a more stable phase ahead, as traders analyze whether this positive momentum will continue and help sustain the recent gains.

Bitcoin's Weekly Close Delivers Positive News

Bitcoin experienced a sharp decline on September 5 after the August U.S. payrolls report came in slightly weaker than expected. This led to a significant correction, with Bitcoin’s price falling below $55,000 for the first time since the notable Black Monday on August 5. Despite a slower trading weekend, Bitcoin managed to recover some of its losses and is now trading in a third consecutive bullish session on the daily chart.

The recent weekly close above $53,250 is viewed as good news by analysts, as this level helps to protect the very bottom of the bargain buying area. Historically, September has been a challenging month for risk assets like Bitcoin. However, some analysts are optimistic that the final quarter of 2024 will see Bitcoin’s price increase. Data indicates that the Bitcoin risk index stands at 99.62, similar to levels observed in mid August, following Bitcoin’s drop below $50,000. This risk signal suggests that a clear bottom has not yet been established and points to the possibility of further declines.

Recent data shows Bitcoin bulls actively pushing through sell orders between $55,000 and $56,700. As of the latest update, the $57,000 level attracted the most liquidity to the upside, amounting to $38.85 million. Additionally, Bitcoin short liquidations from September 8 to 9 totaled over $54.2 million, with the total cross-crypto liquidations reaching $135.86 million.

Bitcoin RSI Sparks Optimism

The BTC/USD 4-hour chart reveals a bullish divergence in the 4-hour RSI, which has preceded the price recovery observed over the past three days. The RSI, a momentum oscillator used to gauge whether a market is overbought, oversold, or accumulating, is showing signs of a positive trend shift. A bullish divergence occurs when a drop in price is matched by an increase in momentum, often leading to upward price movements. This divergence suggests that bulls may be gaining traction in the market, potentially driving the price towards the 200-day exponential moving average at $59,000 in the near term.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.