The short-term increase in Bitcoin is excessive, and there is a demand to return to the 7-day line

Based on the current market situation and analysis, there is a certain possibility of a pullback demand for Bitcoin (BTC) after a short-term increase. Here are some analyses supporting this view:

Technical analysis

• Moving average pressure: After a rapid rise, BTC may need to retest key moving averages to confirm the effectiveness of support. For example, the 7-day moving average is an important short-term support level. If the price pulls back to near this moving average and finds support, it may confirm the upward trend again.

• Indicator signals: Currently, BTC's RSI indicator has not yet entered the overbought area, but the daily MACD golden cross continues, indicating that the market still has further upward momentum.

Market sentiment and liquidity

• Profit-taking pressure: During a rapid rise, some short-term investors may choose to take profits. This profit-taking selling pressure may lead to a certain price pullback.

• Capital inflow trend: Although the capital inflow trend is currently quite evident, changes in market sentiment may cause a temporary adjustment in capital flows.

Historical reference

From past market performance, Bitcoin has also experienced multiple pullbacks during bull markets. For example, on March 5, 2024, Bitcoin saw a significant pullback after reaching an all-time high. However, as the market matures, the severity of pullbacks has been gradually weakening.

Current market situation

• Price trend: Currently, BTC's price is fluctuating around $93,000, with a certain resistance range above ($93,500-$94,500). If it cannot break through effectively, it may trigger further pullbacks.

• Support and resistance: The key support level below is in the $91,500-$92,000 area. If the pullback is significant, it may retest the $90,000 round number.

Comprehensive judgment

Although the overall trend of BTC remains strong, a short-term pullback to the 7-day moving average to confirm support is possible. If the price can find support near the 7-day moving average during the pullback, it may attack again and break through the resistance above; conversely, if the pullback is significant and breaks the key support level, it may trigger a deeper pullback.

Note: The cryptocurrency market is highly volatile, and the above analysis is for reference only. Investment should be cautious.