Bitcoin’s bull market is intact, but key levels signal risk, says Galaxy Digital analyst

💡 DMK Insight

Bitcoin’s current position is crucial, and here’s why: traders are eyeing potential support and resistance levels that could dictate the next big move. With market sentiment shifting, the focus is on whether Bitcoin can hold above key psychological levels. If it slips below these thresholds, we could see a cascade effect, triggering stop-loss orders and further selling pressure. Moreover, the broader economic context can’t be ignored. With interest rates still in flux and inflation concerns lingering, Bitcoin’s appeal as a hedge is being tested. If institutional players start pulling back, it could exacerbate volatility. Traders should keep an eye on the 200-day moving average as a critical support level; a breach could signal a more significant downturn. On the flip side, if Bitcoin manages to reclaim previous highs, it could attract fresh buying interest, especially from retail investors looking for a rebound. Watch for upcoming economic data releases that could impact market sentiment, particularly around inflation and employment figures. These could provide the catalyst for Bitcoin’s next move, whether up or down.