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Bitcoin Eyes Relief Rally Toward $100K-$110K After Capitulation

Bitcoin shows early signs of bottoming with potential relief rally amid improving market sentiment and supportive macro factors

  • Bitcoin shows signs of short-term bottoming with potential relief rally toward $100,000–$110,000 range.
  • Trader behavior and the Bitcoin Relative Strength Index on the weekly chart suggest stabilization after market capitulation.
  • Bitcoin’s price is near its 50-week moving average, around $102,000, a level tied to previous market rebounds.
  • Macro factors like the potential end of quantitative tightening and possible interest rate cuts support optimism for risk assets.
  • Crypto market sentiment has improved from “Extreme Fear” to “Fear,” indicating a less negative outlook.

Bitcoin may be establishing a short-term bottom following weeks of significant selling pressure. A market analyst, Mister Crypto, shared in a recent video that Bitcoin’s structure shows early signs of stabilization after what he described as market-wide “capitulation.” He noted that large traders are beginning to open new long positions even as market sentiment remains in extreme fear, a combination historically linked to price rebounds. More details can be found on his video.

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A key technical indicator is the Bitcoin Relative Strength Index (RSI) on the weekly chart, which is nearing the 30 mark. The RSI measures momentum and a level near 30 often signals an oversold condition, suggesting a possible price bottom. “We have bottomed out for Bitcoin right here. We have been reaching the 30 level. Boom,” stated the analyst. Historically, this RSI level aligns closely with market bottoms, although it does not guarantee the start of a new bull run.

Another important consideration is Bitcoin’s proximity to its 50-week moving average, currently near $102,000. This average reflects the price trend over roughly a year. Past cycles show that Bitcoin often retraces to this level after drops, indicating a likely rebound that could push prices back above six figures before any further trend develops.

Optimism is also supported by macroeconomic factors. Expectations that quantitative tightening—the reduction of central bank balance sheets—may end soon, along with speculation about a forthcoming interest rate cut at a policy meeting, tend to improve conditions for riskier assets such as Bitcoin.

In terms of market sentiment, the Crypto Fear & Greed Index recently improved from an “Extreme Fear” level to “Fear” with a score of 28 after 18 days in the most negative zone. Additionally, Bitwise Europe research head André Dragosch remarked that Bitcoin presents an “asymmetric” risk-reward profile similar to the March 2020 COVID crash scenario, as the market appears to have priced in a bleak global outlook. More on this perspective is available from Mister Crypto.

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