- Bitcoin recovers from sub-109,000 levels
- Price remains below 20- and 50-day SMAs
- Momentum indicators suggest bulls attempt to reestablish upward trajectory
is recovering for a third consecutive session, trading near 113,380 as the market digests President Donald Trump’s efforts to influence the Fed and his family’s further involvement in the sector. The rebound also follows Nvidia’s (NASDAQ:) better-than-expected earnings release and is likely supported by a fresh all-time high in the .
The largest cryptocurrency is stabilizing after a sharp 12% correction from its record high of 124,480 on August 14, which led to a seven-week low of 108,829 on Tuesday.
The momentum indicators are showing signs of recovery. The daily RSI has climbed to 46, approaching the neutral 50 threshold for the first time since Friday, while the stochastic oscillator has posted a bullish crossover in the oversold territory.
If the bullish momentum continues and Bitcoin closes above the near-term downtrend line, initial resistance may emerge at the 50-day SMA around 116,649 – located just below the 117,000 level that triggered a sharp 6% pullback on Sunday. Higher up, the next resistance could come from the August 18 peak of 118,600.
On the downside, initial support lies near the previous all-time high of 112,000 posted on May 22. Further support levels are seen at 110,500 and 108,829. A deeper correction could expose the July lows near 105,300.
As August draws to a close, Bitcoin bulls are attempting to contain the monthly decline, with the price currently down about 3% for the month and 10% below its all-time high. A negative monthly close would break a four-month winning streak – the longest since March of last year. To shift that outlook in the immediate term, Bitcoin needs to reclaim a close above the 20-day SMA near the 115,833 level.