Bitcoin Price Holds Steady Near $115,000
Bitcoin (BTC) price stayed around $115,000 on Friday. It has gained nearly 4% in two weeks since early September. This rise is supported by strong institutional investments and new Bitcoin purchases by companies like Metaplanet and MicroStrategy. Market optimism also grows as traders expect the Federal Reserve to cut interest rates next week. There is a small chance of a larger 50 basis points rate cut.
Institutional Demand and Market Factors Boost Bitcoin
Institutional investors added $1.7 billion to Bitcoin spot ETFs this week, marking the third week of positive inflows. This is the highest weekly inflow since mid-July. Renewed corporate buying also helped the price. MicroStrategy bought 1,955 BTC for $217.4 million, increasing its total holdings to 638,460 BTC. Metaplanet added 136 BTC, bringing its total to 20,136 BTC. Hong Kong’s QMMM Holdings announced plans to invest up to $100 million in Bitcoin, Ethereum, and Solana.
US economic data supports the positive mood. The Producer Price Index (PPI) fell to 2.6% year-on-year in August, down from 3.1% in July. Core PPI also declined, signaling softer inflation pressures. The Consumer Price Index (CPI) rose slightly in August, but weekly jobless claims hit the highest level since October 2021. These signs point to a weakening labor market and increase chances of Fed rate cuts.
On-Chain Data Shows Strong Buying Power
Binance saw its largest net stablecoin inflow of over $6.2 billion on Monday. Its stablecoin reserves reached nearly $39 billion, a new record. High stablecoin reserves mean traders hold more cash ready to buy crypto. This liquidity often supports Bitcoin’s price.
However, some traders show fear and uncertainty. Many expect Bitcoin to drop below $100,000 and altcoins to fall. Historically, such fear can signal a market bottom and a possible price rebound.
Market Caution Despite Positive Signs
Glassnode’s weekly report notes Bitcoin is stabilizing above $111,000. Selling pressure has eased, but options markets show demand for downside protection remains high. Open interest in options decreased, suggesting lighter trading activity. Volatility has calmed, but traders remain cautious. The report advises watching for short-term price bounces if buying demand grows.
Will Bitcoin Reach $120,000 Soon?
Bitcoin’s weekly chart shows bullish momentum with a Relative Strength Index (RSI) at 59, above neutral 50. The price rebounded from a July low of $107,429 and could move toward $120,000 if support holds. However, the Moving Average Convergence Divergence (MACD) indicator shows a bearish signal from early September, warning of possible weakening momentum.
On the daily chart, Bitcoin gained over 2% midweek and closed above the 50-day Exponential Moving Average (EMA) at $113,112. It faces resistance near $116,000. If BTC breaks above this level, it may target $120,000. The daily RSI is 56, showing growing bullish strength, and the MACD shows a bullish crossover, indicating an upward trend. If rejected at $116,000, Bitcoin could drop back toward the 50-day EMA.
