Key Takeaways
- The Bitcoin price shows a sharp recovery following the trade talk meeting between the Presidents of China and the US.
- The Bitcoin four-hour chart displays a bullish divergence, indicating that BTC is poised for an upside momentum.
- Whales have begun closing their multi-million-dollar short positions to take profits, indicating that an upside rally may be on the horizon.
The world’s largest cryptocurrency, Bitcoin (BTC), after plunging 4.70%, has begun showing signs of a potential price recovery, rising from $109,950 to $112,800. The optimism comes ahead of an upcoming trade meeting between US President Donald Trump and Chinese President Xi Jinping, along with encouraging comments from Fed Chair Powell during the recent meeting.
Here’s Why Bitcoin Price Poised For Rebound
According to a recent report, White House officials confirmed that US President Trump and China’s Xi have scheduled a meeting to discuss trade. This comes after Trump’s 100% tariff announcement on October 10 and China’s response today, stating that the country is ready to “fight to the end.”
Adding to the bullish momentum, today’s Fed meeting has further strengthened Bitcoin’s bullish outlook. In the meeting, Chair Jerome Powell noted that economic growth before the government shutdown may be better than expected. Powell further stated that the Federal Reserve remains on course for more rate cuts.
In addition, whales holding multi-million-dollar short positions have begun closing them to take profits, as shared by the crypto transaction tracker Onchain Lens.
The trade war and large whale short positions had previously weakened the market. However, sentiment now appears to be improving, and Bitcoin, along with other cryptocurrencies, shows strong potential for a rebound.
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Current Price Momentum and Rising Trading Volume
This is evident in the Bitcoin price, which has sharply recovered over the past few hours, according to TradingView data.
At present, Bitcoin is trading near the $112,900 level. However, the price is still 2% lower than where it started today, though it has impressively recovered from $109,900. This ongoing price recovery appears to be welcomed by investors and traders, as evidenced by trading volume, which has jumped 15% to $92 billion over the past 24 hours.
Bitcoin Price Action and Upcoming Levels
TimesCrypto technical analysis reveals that BTC appears bullish and is poised for a price rebound. On the four-hour time frame, BTC has recorded a bullish divergence, hinting that the asset has strong upward momentum. This suggests that buyers are regaining control, and a short-term rally could be underway if key levels hold.
Based on the current price action, if BTC holds its current support at the $109,900 level, it could see a small upside momentum and may reach the $116,350 level in the coming days. On the other hand, this bullish thesis would fail if the asset price falls below the key support of $109,900.
At present, the Supertrend indicator remains red and hovers above the BTC price, indicating that the asset is in a downtrend with strong selling pressure. Meanwhile, its Average Directional Index (ADX) value has reached 44.17, above the key threshold of 25, indicating strong directional momentum in Bitcoin.
