BTC 7-day moving average recovers, bullish strength
Current Bitcoin (BTC) technical indicators present the following key signals supporting a bullish assessment:
1. 7-day moving average support is solid
The weekly level shows that BTC formed a large bullish candlestick last week, with the candlestick firmly above the 7-day moving average, indicating a strong overall trend. The daily level shows five consecutive small bullish candlesticks, with the candlestick pattern indicating bullish dominance in the short term.
2. Strong capital inflow and spot buying
Glassnode data shows that the 7-day simple moving average (SMA) of BTC's spot trading volume Delta (net spot buying) has recently turned positive, peaking close to $5 billion (May 13), indicating that both institutional and retail investors are driving spot buying, rather than purely leveraged trading. In addition, BTC's realized market cap has increased by $30 billion since April 20, reflecting stable investor confidence and continuous inflow of new capital.
3. Key resistance levels and breakout expectations
Currently, BTC is oscillating in the range of $106,000–$109,000. If it breaks above and closes above the descending trend line (approximately $108,500) with increased trading volume, it will confirm bullish dominance, with the first target at $109,000 and the second target at $111,980. If it fails to quickly recover $106,000, it may fall back to $103,500 or even the $100,000 support.
4. Market sentiment and long-term trend support
Although there is high-level oscillation in the short term, the weekly indicators remain stable and upward, and the medium to long-term bullish trend remains unchanged. Against the backdrop of a global rally in risk assets (such as gold and stock markets), BTC's value as 'digital gold' is highlighted, further supporting bullish sentiment.
Conclusion: Current BTC technical analysis and capital flow both indicate bullish dominance, with effective 7-day moving average support and strong spot buying. If it breaks key resistance levels, a new round of increases is expected; however, short-term pullback risks should be noted, but the medium to long-term trend remains optimistic. It is recommended to closely monitor trading volume and trend line breakout conditions to confirm the sustainability of bullish momentum.