4 min readDespite recent volatility, Bitcoin continues to show resilience, holding above key support levels even as broader market sentiment remains cautious. Last week’s non-farm payrolls report revealed softer-than-expected job growth in the US, fuelling speculation that the Federal Reserve may adopt a more dovish stance moving forward. This shift in expectations has provided some support to risk assets, including Bitcoin, as traders now eye upcoming inflation data for further clues on monetary policy.
Bitcoin (BTC) is currently trading around $94,600, continuing to hold above important moving averages and maintaining a bullish market structure.
Following the major breakout that began in late April, Bitcoin has reclaimed and continues to trade above both the 10-day exponential moving average (EMA) and the 200-day simple moving average (SMA). The daily 10 EMA is currently providing initial dynamic support around $94,400, while the 200 SMA sits near $90,400. Slightly below, the daily 50 EMA is positioned around $89,400. These moving averages, combined with the 50% and 0.618 Fibonacci retracement levels from the latest uptrend, form a significant confluence support area between $90,500 and $88,500. This zone also aligns with the previous high time frame breakout level. A potential retest of this area could be a crucial level for bulls to defend to maintain the broader uptrend.
An interesting observation to note is the bullish divergence that developed prior to the recent breakout. Both the MACD and RSI were creating higher lows while price was forming lower lows — a classic signal of momentum shifting to the upside. This serves as a reminder of how momentum indicators can provide early clues of potential trend reversals.
To the upside, the initial resistance to monitor is the recent swing high at $96,900. A sustained break above this level could open the path towards the next minor resistance at $101,400. Beyond that, the major high time frame resistance remains in the all-time highs area between $106,000 and $109,500.
Key technical levels to watch
- Support: Initial support at the daily 10 EMA ($94,400). Strong confluence support between $90,500 and $88,500 (200 SMA, 50 EMA, Fib zone, previous breakout level).
- Resistance: First resistance at $96,900. Above that, $101,400, and then the all-time highs zone at $106,000 to $109,500.
Bitcoin’s ability to hold above its key moving averages and the bullish confluence zone will be critical in determining whether this latest rally has further room to run.
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