02.09.202509:27 Forex Analysis & Reviews: Bitcoin shows early signs of life

Bitcoin buying is beginning to take clearer shape after bears made several failed attempts to push the price below the $108,000 level.

Repeated defense of this psychologically significant threshold suggests bullish momentum is building, laying a stable foundation for a potential move higher. Market participants betting on further gains are demonstrating resolve to defend their positions, raising the prospect of a renewed uptrend. Bears' failures to break through $108,000 set a precedent that is forcing them to retreat and reassess their strategy. To keep alive any hopes of further declines, sellers will now need to organize a much more powerful and coordinated effort. Otherwise, bulls—buoyed by growing confidence—could drive Bitcoin to fresh highs.

Meanwhile, market participants are closely following discussions around the potential launch of spot ETFs for assets like XRP and Solana. For example, Nate Geraci, president of ETF Store, stated in an interview yesterday that spot XRP ETF inflows could reach $5 billion in the first month of trading after launch. In his view, most market players have yet to appreciate how significant these instruments could become. However, it is important to acknowledge the regulatory and technical challenges involved in bringing spot ETFs for XRP or Solana to market. The SEC maintains a conservative stance on these crypto assets and requires strict standards from ETF issuers. Before granting approval, regulators need to be confident there is sufficient market liquidity, robust investor protections, and effective safeguards against manipulation.

Nevertheless, the precedent set by approving spot Bitcoin and Ethereum ETFs has created a new trajectory for the crypto industry, paving the way for similar products tied to other cryptocurrencies. Should spot ETFs for XRP or Solana win approval, it could lead to substantial capital inflows, increased liquidity, and higher recognition of these assets among a broader investor base. The potential impact is difficult to overstate, as such a move could change crypto market structure and accelerate its integration with traditional finance.

Trading recommendations:

In terms of the technical outlook for Bitcoin, buyers are now targeting a recovery to the $110,400 level, which would open a direct path to $112,100 and shortly thereafter $113,700. The furthest target is the high around $115,600. A break through this mark would signal further bull market momentum. On declines, buyers are expected at the $109,000 level. If the price moves below this area, BTC could quickly test support near $107,400. The most distant target to the downside stands at $105,140.

For Ethereum, holding above $4,501 opens a clear path to $4,645. The most distant target is the high near $4,807. Surpassing this would confirm renewed bullish momentum and increased buyer interest. If Ether falls back, buyers are expected around $4,355. A move below this area could quickly send ETH toward $4,215, with the most remote target at $4,077.

What we see on the chart:

- Red lines highlight support and resistance levels where either a pause or sharp price movement is expected.

- Green lines denote the 50-day moving average.

- Blue lines show the 100-day moving average.

- Light green lines represent the 200-day moving average.

Crossing or testing of the moving averages typically halts or initiates new market momentum.