Bitcoin traders are breathing a sigh of relief. After a volatile stretch, BTC has climbed back above $57,000, sparking cautious optimism that the worst may be behind.
The crypto market, rattled by last month’s payroll report, now seems poised for a recovery.
Data from Cointelegraph Markets Pro and TradingView show that Bitcoin regained 8.3% from its lows of $52,546 earlier this week.
Traders are buzzing, interpreting the rally as a potential market bottom.
The sharp selloff that began on September 5 was triggered by the August U.S. payroll report, which came in slightly below expectations.
Bitcoin tumbled below $55,000 for the first time since the “Black Monday” dip in early August. However, after a sluggish weekend, Bitcoin’s bounce back into bullish territory has many rethinking their strategy.
Bitcoin’s close above $53,250 was a key moment, according to popular trader Rekt Capital, who sees this as “good news” for the market.
In a recent post on X, he explained that this level acts as critical support, protecting Bitcoin from further decline.
He noted that “to build on this momentum, Bitcoin needs to reclaim $55,881 as support,” pointing to key technical levels as the next hurdle.
Though September has historically been a tough month for Bitcoin—often dubbed “Rektember” by the crypto community—many experts are looking ahead to Q4 with optimism.
Traders like Rekt Capital see potential for Bitcoin to rally higher but acknowledge the need to “survive September” first.
Swissblock Insights analysts echo this caution, highlighting that September often marks a period of consolidation as traders lock in summer profits and businesses set new Q4 targets.
Bitcoin’s risk index sits at 99.62, levels similar to mid-August, indicating uncertainty about whether the market has truly found its bottom.
There remains the possibility of another dip if the rally doesn’t hold.
Yet, signs of strength are emerging.
Bitcoin bulls have pushed through resistance levels between $55,000 and $56,700, and $57,000 is now drawing significant liquidity, totaling $38.85 million at the time of reporting.
Additionally, short positions were liquidated en masse, with over $54.2 million wiped out between September 8 and 9 alone.
Adding to the optimism, technical indicators like Bitcoin’s RSI (Relative Strength Index) are fueling hope for a sustained recovery.
The RSI shows a bullish divergence—essentially, while prices have been falling, momentum has been building, a sign that buyers may be regaining control.
Some traders are already eyeing the next key target: the 200-day exponential moving average at $59,000. It remains to be seen if Bitcoin can break through this barrier, but for now, the mood is cautiously upbeat.
Could this be the turning point? Only time—and the next few critical trading sessions—will tell.
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