Dead cat bounce to $118K? 5 things to know in Bitcoin this week

Bitcoin started the week strongly, rallying past $111,000, leading some traders like CrypNuevo to speculate about a short squeeze targeting $116K-$117K, potentially reaching $118K. Ted Pillows noted $112,000 as a crucial reclaim level, especially as easing US-China trade tensions might support a rally. However, bearish sentiment persists, with trader Roman highlighting declining volume and bearish divergences on longer time frames, suggesting the recent move up could be a 'dead cat bounce' before potentially filling the unfilled wick around $102,000 on Binance. Macro-wise, the market awaits Friday's Consumer Price Index (CPI) data, which will be released during the US government shutdown and heavily influences the Federal Reserve's upcoming interest rate decision. Meanwhile, crypto leverage is cautiously returning, indicating traders are regaining some confidence but are not yet betting on major sustained increases. Finally, Bitcoin dominance is under scrutiny; after losing its macro uptrend, analysts suggest a sustained downtrend in dominance could signal the start of a major altcoin season if key support levels fail.

(Source：Cointelegraph)