What are the critical levels for Bitcoin's rise?

Recently, market volatility has led to renewed interest in the price of Bitcoin (BTC) among investors. The price of Bitcoin experienced a drop following remarks from Federal Reserve Chairman Jerome Powell suggesting that interest rate cuts may not occur. However, analyses indicate that Bitcoin continues to stay above a significant support level.

CoinDesk analyst Omkar Godbole notes that the price of Bitcoin is trading at around $111,000 and is holding above the long-term trend indicator, the 200-day moving average (at $109,250). While this situation is a hopeful indicator for bulls, the weak outlook in the market cannot be ignored. Godbole mentions that the price of Bitcoin remains below the Ichimoku cloud, which highlights weak momentum in the short term.

According to technical indicators, the dollar index (DXY) has gained strength in recent days and has risen above the 50 and 100-day moving averages. The resurgence of U.S. Treasury yields above 4% is increasing selling pressure on risky assets. Historically, these kinds of periods are recorded as times when assets like Bitcoin face weak momentum and cautious investor behavior.

Analysts particularly indicate that for Bitcoin price to regain strength, it must surpass the $116,000 level. A clear close above this level could be viewed as the beginning of a new upward trend in the markets. It is essential for investors to closely monitor Bitcoin’s price movements and key support and resistance levels.