Bitcoin’s price has been a bit sluggish lately, after a strong start to the summer. While it hasn’t made any huge leaps recently, there’s some optimism building for October (“Uptober”). Let’s dive into why one analyst thinks $114,000 is a key number.
The $114,500 Support Level
Crypto analyst Axel Adler Jr. recently pointed out a crucial support level for Bitcoin: $114,500. He’s using something called the Volume-Weighted Average Price (VWAP) to make this call.
VWAP shows the average price of Bitcoin, but it weighs in how much was traded at each price. This creates upper and lower bands that act like dynamic support and resistance levels. Currently, the 14-day VWAP band is around $114,500, acting as a cushion for Bitcoin’s price.
Adler’s take? As long as Bitcoin stays above $114,500, it’s likely to keep its upward trend. He even mentioned that the futures market shows less bearish pressure, adding to the positive outlook.
What to Watch For
While the spot market (the actual buying and selling of Bitcoin) looks resilient, we need to see if this translates into actual price increases. Right now, Bitcoin is trading just under $116,000, so it’s close to this key support level. The coming weeks will be crucial in determining whether Bitcoin can maintain its upward momentum.