After several days of selling pressure and uncertainty, Bitcoin is showing renewed strength, climbing back to reclaim the $118,000 level just a few hours ago. The recovery has lifted sentiment across the market, with momentum turning bullish as traders speculate that the next leg of the cycle may already be underway. For many analysts, this latest surge confirms that buyers remain firmly in control, reinforcing calls for a continuation of the broader bull trend.
Key data highlights that Coinbase is leading this move, with the exchange showing a significant premium compared to other platforms. The Coinbase Premium Gap is signaling stronger spot demand from US-based investors. This premium often reflects institutional and retail appetite flowing through regulated venues, making it a reliable gauge of genuine market demand.
Maartun explained that this premium is more than just a pricing discrepancy—it often signals that capital is flowing aggressively into Bitcoin from US-based participants. Over the past few months, US investors have played a leading role in supporting Bitcoin’s bull cycle, particularly through ETF inflows and spot accumulation. The persistence of a positive Coinbase Premium Gap reinforces the narrative that genuine demand is driving the market, not just leverage or speculative flows.
With Bitcoin recently reclaiming the $118,000 level, the market is now watching closely for a potential test of previous all-time highs. Many analysts expect that if spot demand continues to build at this pace, BTC could retest the $125,000–$130,000 range sooner rather than later.
The coming days will be critical. A sustained premium on Coinbase, paired with strong momentum, could accelerate Bitcoin’s rally and confirm the continuation of the bullish cycle. However, if the premium fades, it may signal caution and open the door to short-term corrections before any attempt at new highs.
Bitcoin is trading around $118,700 after a sharp rally that pushed the price decisively above the $117,500 resistance zone. This level has acted as a ceiling since July, rejecting multiple breakout attempts, making the current move a potentially pivotal shift in market structure. If BTC can sustain momentum here, the next psychological target lies at $120,000, with summer highs near $125,000 back in play.
The daily chart shows strong bullish momentum, with Bitcoin reclaiming the 50-day (blue) and 100-day (green) moving averages in quick succession. Both levels had capped upside during September, but the clean break above them signals renewed strength from buyers. Meanwhile, the 200-day moving average (red), trending far below current price near $103,000, continues to provide long-term support and highlights the underlying bullish bias.
However, the rapid nature of this move raises the possibility of short-term volatility. If Bitcoin fails to consolidate above $117,500, it risks a pullback toward $115,000 or even $113,000 as traders lock in profits. Still, holding above former resistance would flip it into new support, strengthening the case for continuation higher.
Featured image from ChatGPT, chart from TradingView.com
