The token has flipped the 20-day SMA from resistance to support, signaling market confidence.
Bollinger Bands indicate rising volatility, with $101,000 as a likely breakout point for Bitcoin.
Traders focus on $96,000 as critical support, while $101K remains the next major resistance level.
Bitcoin has broken through a barrier level, reclaiming the 20-day Simple Moving Average as support. The crypto trades near $97,175.38, reflecting a slight daily gain of 0.24%. Most importantly, this marks a shift in trading sentiment, with traders closely observing key price levels and financial indicators.
Source: X
The 20-day SMA, a pivotal benchmark, now serves as a support zone after Bitcoin consolidated above $96,483.69. Additionally, Bitcoin’s proximity to the Bollinger Bands’ upper level at $101,150.11 points to rising volatility. Traders focus on whether the crypto will sustain its rising trend or face possible pullbacks.
Key Technical Indicators Signal Volatility
The Bollinger Bands show Bitcoin is nearing the upper boundary, indicating heightened market activity and a possible overbought condition. The lower Bollinger Band, at $91,817.27, provides a safety net in the event of a price drop.
Besides, Bitcoin has shown consistent higher lows, a sign of building bullish momentum. The cryptocurrency has rallied steadily since December, recovering from its recent dip below key support zones. Moreover, strong daily candle closes above the 20-day SMA reinforce optimism among market participants.
Market Sentiment and Future Price Outlook
Market sentiment has grown optimistic following Bitcoin’s reclaim of the 20-day SMA. The chart shared by Cantonese_Cat on Twitter highlights these developments, drawing attention from the community. With over 10,400 views, the analysis has sparked discussions about Bitcoin’s near-term potential.
However, skepticism lingers, with some traders suggesting Bitcoin might retest the SMA as support before a decisive move. Consequently, $96,000 remains a critical level to watch if prices retrace.
Will the token surpass $101,000 to continue its rally, or will it face further resistance at this level? Moreover, macroeconomic factors such as inflation data and Federal Reserve policies could influence Bitcoin’s trajectory.
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