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Bitcoin, the world's most valuable coin, is at a key level as market participants watch its price movement closely. On shorter time frames, the four-hour and six-hour charts are showing oversold RSI levels and bullish divergence, according to a chart from Scott Melker. These signals come at an important $112,000 support mark and coincide with news that could affect market sentiment.
Bitcoin RSI patterns around key support zone
CoinMarketCap data shows that Bitcoin is trading at $115,114.89 as of press time. The digital asset is below its recent record high of $124,000.
Analysts point out that the four-hour and six-hour charts show bullish divergence with oversold RSI. Similar patterns may also be forming on the twelve-hour and daily charts.
This is important because $112,000 has been acting as a strong support level for days. If the level holds, many believe it could open the way for another rise. If it fails, the market could see more pressure.
It is important to add that the timing is also drawing attention since these signals are appearing alongside wider global news about cryptocurrency. Some traders think the alignment of these indicators increases the chance of a rebound.
More importantly, other market participants remain cautious, noting that the market has been unpredictable. The mixed views reflect how much weight investors are giving to both technical signals and current events.
Philippines plans Bitcoin reserve
In separate news from the price outlook, a major development has emerged from the Philippines.
A new bill, called the Strategic Bitcoin Reserve Act, has been introduced to buy 2,000 BTC every year for five years and hold it for twenty years.
Sponsors of the bill explained that the goal is to strengthen the country’s financial position and add long-term stability.
He also believes it would help the Philippines take part in the growing global cryptocurrency market. If approved, the measure would make the Philippines one of the first countries to officially build such a reserve.
Meanwhile, Bloomberg analyst Mike McGlone has warned that a sudden price surge could prompt a reaction from the U.S. Federal Reserve.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team