Bitcoin is slowly regaining its footing after the nosedive on November 3–4. Despite strong selling pressure, the leading cryptocurrency held the psychologically important level of $100,000, with all drawdowns being shortly bought back. These price movements formed a double bottom pattern on the 4-hour timeframe, suggesting that BTCUSD is poised to return to the starting point. Given the current course of events, $110,000 could be the next target for investors.
The MACD indicator has recently entered positive territory for the first time in two weeks, confirming the strength of Bitcoin’s upward momentum. The RSI, on the other hand, is now indicating overbought conditions, which could be mitigated by a little pause in the current movement. The 50-day moving average and the double bottom pattern’s neckline near $104,000 should limit any potential pullback. Keeping long positions remains acute as long as the price holds above the $101,500 level.
JPMorgan analysts are confident in Bitcoin’s growth potential, setting a new goal of $170,000. They believe that the sell-off in late October and early November was driven by the liquidation of leveraged long positions. At the same time, fundamental factors remain unchanged. Major institutional investor activity serves as evidence of their strength. Their Bitcoin purchases have increased by 12% over the past week, limiting the bears' ability to profit.
The resolution of the US government shutdown is another factor viewed positively by traders. Commodity Futures Trading Commission (CFTC) Chair Caroline Pham confirmed that negotiations with American exchanges regarding the approval of leveraged cryptocurrency trading are underway. If the shutdown is resolved soon, the CFTC could issue the necessary permissions by the end of 2025. This might attract new participants to the cryptocurrency market, especially during periods of high volatility.
Take the following trading strategy into account:
Buy BTCUSD above $104,000. Place Take profit at $110,000 and Stop loss at $101,500.
This content is for informational purposes only and is not intended to be investing advice.
