Bitcoin has started the second week of May with strong bullish momentum, breaking through key resistance levels and reaching fresh local highs. While the rally has been rapid, and current technical indicators suggest the move could extend further, traders should still proceed with caution.
Daily Chart: BTC Clears $100K Resistance
On the daily timeframe, Bitcoin has decisively broken above the crucial $100K resistance level and is now trading around $104K. This breakout signals the end of a month-long consolidation phase between a rising trendline and the 100- and 200-day moving averages.
The price has successfully reclaimed both moving averages, which were positioned around $90K. Meanwhile, the Relative Strength Index (RSI) is holding above 70, indicating strong bullish momentum—though it is also nearing overbought territory. If buyers manage to maintain control and prevent sharp pullbacks, a push toward a new all-time high becomes a likely scenario.
4-Hour Chart: Momentum Slows but Structure Remains Bullish
Zooming into the 4-hour chart, the breakout appears even more distinct. Bitcoin has surged out of an ascending channel pattern, easily breaching the previous supply zone around $98K and continuing higher in a steady manner. The RSI has since cooled off, exiting the overbought zone, which supports the sustainability of the uptrend.
Recent price action suggests that momentum may be slowing slightly, but there is still no confirmation of a trend reversal. A healthy correction toward the $100K–$98K range could present a solid re-entry opportunity for bullish traders—assuming buyers remain in control. If this zone fails to hold, the next significant support lies near $94K, where buyers may step in again.
On-Chain Analysis: Miner Reserve Continues to Drop
On-chain data reveals a continued decline in Bitcoin Miner Reserve, which has now dropped to approximately 1.8 million BTC—the lowest level seen in recent years. This trend suggests that miners are not accumulating during the current rally. Instead, they appear to be engaging in a gradual distribution strategy.
Rather than holding onto their BTC, miners may be taking advantage of the higher prices or covering post-halving operational expenses by selling some of their holdings. While this doesn’t point to aggressive dumping, the lack of accumulation means miners are not contributing to any long-term supply squeeze. This reinforces the notion that the current demand is primarily being driven by institutional and retail investors.
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