🛡️ Bitcoin maintains its support line: Key support intact after a brief pullback!
A modest decline that lasted two weeks of tight consolidation below its all-time high of $123,000 has ended, causing Bitcoin volatility. The price briefly dropped to around $115,000 but recovered, indicating positive momentum despite recent selling pressure. Market participants appear calm, as strong demand quickly absorbs the decline.
The recovery in price and increase in open interest indicate a shift in sentiment. Bulls seem ready to defend key levels with the return of short-term traders. Bitcoin's ability to maintain and reclaim recent support will determine whether it continues to rise or remains within a certain range amid increasing volatility.
According to CryptoQuant's research director, Julio Moreno, open interest has increased by $4 billion in the past 24 hours, indicating that leveraged positions - especially short ones - have entered the market in large numbers.
With traders expecting price volatility, speculative behaviors may escalate. Typically, inflows to exchanges and increased open interest indicate instability. Short sellers are counting on further declines, but Bitcoin has already recovered from its drop to $115,000, which could lead to a short squeeze if sentiment turns positive.
BTC remains optimistic on the daily chart despite recent disruptions. The price retreated towards the support range of $115,700–$117,000 after temporarily stabilizing around the resistance area of $122,000 and reaching its all-time high above it. This horizontal yellow range aligns well with the 50-day simple moving average (SMA), which now stands at $117,593.23, reinforcing its technical support.
On the chart, higher highs and higher lows confirm the early bullish trend in May. BTC remains above the 100-day and 200-day simple moving averages at $112,547.95 and $109,436.38, respectively.
The red candles indicate slightly higher volume, suggesting selling pressure, but there is no panic. Bulls win as long as BTC remains above $115,700. A rise above $122,000 may confirm the trend and lead to new highs.
Source: Koinmilyoner Trader Page
