Bitcoin And Ethereum Defend Key Moving Averages – Bullish Signal Or Temporary Relief?

Bitcoin has experienced renewed volatility since late May, with the market pulling back from recent highs and creating uncertainty among investors. The price of Bitcoin has cooled down but continues to hold above key levels that are being closely watched by bulls. The broader sentiment remains fragile, with many investors unsure if the current pause is a healthy one or a setup for further downside. Analysts are calling for a decisive move above the all-time high to confirm trend continuation, but momentum remains limited for now. The risk of a further decline still exists, especially with macro headwinds unresolved and liquidity tight. A recent technical update by analyst Daan highlighted that both Bitcoin and Ethereum have tested their respective 4-hour 200MA and EMA and bounced, which could be a subtle but important signal. The fact that both assets respected these moving averages as support is a positive sign, but this bounce needs follow-through to be sustainable. Bitcoin continues to trade in a tight range just below its all-time high, showing resilience and outperforming many altcoins, but the broader macro environment is becoming increasingly uncertain. The US economy is entering a more fragile phase, with tightening credit conditions and stubborn inflation, which raises the stakes for risk assets like Bitcoin. The next move by Bitcoin could set the tone for the rest of the summer, and traders and long-term holders should keep a close eye on how the price reacts to key support zones in the coming days.