After holding above $110k throughout Sept, BTC has successfully reclaimed it and jumped to $115k before slightly retracing to $112k on Tuesday. Despite volatility, market sentiment appeared to stabilize.
Interestingly, while Bitcoin has recently faced challenging weeks, market participants are yet to turn overly bearish. Inasmuch as so, the Fear and Greed Index registered 54 at press time, signaling neutrality. As such, most market influencers shared an optimistic view of the market in the coming days. Thus, social media posts emphasizing the need to defend $110k surged.
These social media posts indicate that Bitcoin will rebound if key support levels hold, with October resulting in more gains. While influencers eyed rallies, Futures markets signaled recovery. BTC’s Funding Rates turned positive on the 29th of September after two negative sessions.
If the demand for longs holds, it will result in significant upward pressure on the BTC price. If it does, the short will get liquidated. If BTC retests $113k, cumulative short liquidation intensity on major CEXs could reach over $400M, fueling momentum toward $125k. This implied that 170k BTC had flowed out of exchanges compared to inflows. When outflows exceeded inflows, buyers dominated.
If October follows historical Q4 trends, BTC could target a new ATH, with $130k as a base and $140k as the bullish case. As of now, at the time of writing this article, BTC is being trade around $113k and has seen a growth of 0.37% in its price over the past 24 hours, and stands at a market capitalization of $2.254 Trillion.