Bitcoin Breakout and Market Reactions

Key Points:

• Bitcoin has surpassed the Volume Weighted Average Price (VWAP) and is rebounding from a low of $75,000 recorded in April.
• Stocks are reaching all-time highs in response to recent Fed rate cuts.
• Market liquidity hints at increased volatility with Bitcoin’s price aiming for $118,000.

On Thursday, Bitcoin (BTC) approached $118,000 at the Wall Street Open.

Bitcoin Shows Potential for New Highs

According to Cointelegraph Markets Pro and TradingView, BTC/USD has demonstrated daily gains beyond significant resistance points.

In the first trading session after the Federal Reserve’s recent interest rate cut, both the S&P 500 and NASDAQ Composite Index achieved new record highs.

Trading analytics firm Kobeissi Letter indicates that the upward trend in risk assets could persist through next year.

“This year is the third year since 1996 when the S&P 500 reached a record high. The last occurrences were in 2019 and 2024,” they noted.

“When the Fed decreases rates to 2% historically, the S&P 500 has risen an average of +14% over the following year.”

Gold has also experienced increased volatility after surpassing its previous all-time high.

Meanwhile, Bitcoin supporters are working to establish $117,000 as a support level while facing a final resistance before further price movement.

Crypto analyst Crypto Caesar commented on social media, “Bitcoin looks interesting right now. I’m trying to get back to around 117k. If we hit that, I think it opens the way to $120,000, but I remember the last time it rejected this level.”

Caleb Franzen, from Cubic Analytics, observed that BTC/USD has shown bullish patterns since May, recently exceeding its VWAP from historical highs.

“It seems like positive developments have followed since Bitcoin moved past the volume-weighted average price,” he said, sharing insights along with a supporting chart.

Monitoring Potential Market Moves

The exchange order book analysis requires careful consideration.

Warnings from trading analytics suggest that increased liquidity might lead to volatile movements in prices.

“The market conditions appear solidly bullish, yet this seems more like a short-term spike than long-term accumulation,” they stated.

Earlier reports highlighted the growing liquidity in order books, particularly around the $116,500 to $119,000 levels.

This article does not offer investment advice or recommendations. All trading carries risks, and readers are encouraged to conduct their own research before making any decisions.