Bitcoin Stabilize but Volatility Looms Ahead

Crypto Rises as Stocks Struggle

The total crypto market capitalization climbed 1.2% to reclaim $3.9 trillion, while U.S. equities tumbled. The S&P 500 dropped 1.39% to 6,370 points. Once again, crypto is showing resilience against tariff concerns and seasonal headwinds.

Bitcoin, Solana, and XRP led the gains with roughly 2% increases each, setting a cautiously bullish tone in what is historically one of the choppiest months for digital assets. Notably, this uptrend diverges from traditional markets, where Treasury yields spiked and tech stocks fell after a federal appeals court struck down most of former President Donald Trump’s tariffs.

Bitcoin: $110K as a Key Battleground

Bitcoin (BTC) posted a 1.36% gain, trading at $110,735, up from its opening price of $109,255. During the session, BTC briefly touched $111,775, before facing selling pressure near the highs. For now, the $110,000 level has emerged as a critical support zone for the bulls.

The Relative Strength Index (RSI) currently sits at 44, signaling neutral-to-bearish momentum. Meanwhile, the Average Directional Index (ADX) stands at just 20, indicating weak trend strength. Historically, such low ADX readings often precede explosive moves as the market “coils like a spring.”

Other indicators, such as the Squeeze Momentum, suggest bears are attempting to gain control. This has short-term traders eyeing potential short positions, while long-term investors may see this as an opportunity to accumulate at lower levels.

Golden Cross Still Intact, but Losing Steam

On the brighter side, Bitcoin’s exponential moving averages (EMAs) continue to support the broader uptrend. The 50-day EMA remains above the 200-day EMA, forming the so-called “golden cross”—a classic bullish signal that medium-term buyers are outpacing long-term holders. However, the narrowing gap between these EMAs warns of weakening momentum.

On the Myriad Markets prediction platform, most traders currently favor a bearish outlook. They see a 66% chance of Bitcoin sliding to $105,000, up from 44% just two weeks ago, compared to a smaller likelihood of BTC rebounding to $125,000.