Bitcoin (BTC) Price Pulls Back From Multi-Month Highs, Dipping Below $95K

Bitcoin has experienced a notable pullback over the weekend, retreating from multi-month highs as various macro factors weighed on risk assets.

Bitcoin pulled back from multi-month highs over the weekend as various macro factors weighed on risk assets. The cryptocurrency, which had tested the $98,000 level late Friday, fell below the $95,000 mark as markets reassessed the likelihood of Federal Reserve interest rate cuts.

Non-farm payrolls grew by 177,000 in April, the U.S. Labor Department said on Friday, slightly above economists’ expectations of 164,000.

While the report initially sparked a positive response, sentiment quickly soured as bond yields rebounded above the 4.3% threshold, suggesting that borrowing costs might remain elevated for longer.

By 01:34 ET (05:34 GMT), Bitcoin dropped 2.7% over the past 24 hours to trade below the $95,000 mark. The cryptocurrency had briefly touched lows of $93,570 before attempting a modest recovery.

Its price action also encountered resistance at the $95,250 level, where a bearish trend line is forming on hourly charts.

Bitcoin is now trading below both the $96,000 level and the 100-hour Simple Moving Average, technical indicators that traders often keep an eye on.

Market Correlations Strengthen

Bitcoin’s price movements have increasingly become aligned with traditional financial markets, reacting to the same macro factors that affect stocks and commodities. This correlation has grown more pronounced as institutional investors have entered the cryptocurrency space, bringing with them traditional market dynamics.

The weekend sell-off in Bitcoin mirrored broader declines across risk assets. Oil prices fell sharply after OPEC+ surprised markets by announcing accelerated production increases, adding 411,000 barrels per day to global supply in June.

Most commodities also joined the selloff, but gold bucked the trend. Spot prices rose above $3,250 per ounce early Monday as traders sought havens amid renewed uncertainty.

Gold futures rose by 0.3%, trading at $3,243.10 by 01:23 ET (05:23 GMT).

Meanwhile, U.S. equity futures, including S&P 500 E-mini contracts, pointed lower in the morning hours, foreshadowing a defensive shift across markets that also affected Bitcoin’s price action.

Technical Outlook

From a technical standpoint, Bitcoin faces immediate resistance at the $94,500 level, with a more substantial barrier at the $95,250 mark. If the price manages to break above $95,750, it could potentially test the $96,800 resistance before possibly challenging the $98,000 mark again.

On the downside, Bitcoin has established support near $94,000, with major support at $93,500. If these levels fail to hold, further declines could take the price toward $92,500, with the main support sitting at $91,200.

Technical indicators show the hourly MACD losing momentum in the bearish zone, while the Relative Strength Index (RSI) has fallen below the 50 level, suggesting moderately bearish short-term sentiment.

The cryptocurrency’s next major price catalyst will likely be the Federal Reserve’s policy decision on Wednesday. Traders are closely watching whether Chair Jerome Powell will resist calls for rate cuts or adopt a more balanced approach given mixed signals from inflation and employment data.

For now, Bitcoin remains in a consolidation phase, having pulled back from its recent attempt to break the $98,000 level. The short-term direction will depend on whether bulls can regain control above the $95,250 resistance or if bears push the price below the current support zone at $93,500.