Bitcoin’s price has been on a rollercoaster lately. After a massive 50% surge from its April lows, hitting a new all-time high of $112,000, it’s now taking a breather.
Bitcoin’s Stalled Momentum
While Bitcoin initially outperformed the stock market during recent global tensions, it’s recently underperformed over the past two weeks. This is a change from its usual behavior, where it often leads the way during market volatility. This shift suggests that Bitcoin’s short-term direction might be more influenced by overall market sentiment than its usual independent trajectory.
The current pause comes amidst a backdrop of rising US bond yields, stubborn inflation, and increased trade tensions. These factors are creating uncertainty in the global economy.
Holding Above $100K – A Critical Level
Despite the recent slowdown, Bitcoin is holding strong above the $100,000 mark. This is a key support level. The question is: will this be a temporary pause before another surge, or the start of a more significant correction?
Chart Analysis: What the Numbers Say
A look at the weekly chart shows Bitcoin consolidating between $103,000 and $109,000. While there’s been a slight dip, it’s still comfortably above its 34-week moving average, suggesting a longer-term bullish trend remains intact.
- Breaking Above $109,000: This could signal a renewed push upwards, potentially exceeding $115,000.
- Falling Below $103,000:
This would be a warning sign, potentially leading to a deeper correction towards $95,000 – $100,000.
Trading volume has decreased recently, indicating less intense buying and selling activity. The next few days will be crucial in determining Bitcoin’s next move. Will it reclaim its all-time high, or will we see a deeper correction? Only time will tell.
