Recently, the cryptocurrency market has experienced significant volatility. After two days of hourly fluctuations, the price of Bitcoin saw a strong upward trend influenced by the speech of the Federal Reserve Chairman. The daily increase exceeded 16%, setting a new historical high in the Binance spot market.

This wave of increase is mainly driven by the momentum of the 3-day MA30 and the 2-day EMA52. Currently, the price is retracing to test the support level formed by the 1-day MA30 and the 12-hour EMA52.

It is worth noting that the decline in mid-August did not fully reach the intended level. Therefore, the recent increase is largely driven by short-term funds. Investors should closely monitor the potential corrections that may occur next and avoid blindly chasing highs.

From a technical perspective, the daily EMA52 remains a key support level in the near term. On the upside, the main resistance levels at the daily level are located at 4880, 5000, 5400, and 5800. The support levels below are around 4560, 4380, 4080, and 3780.

Despite the high market sentiment, investors should remain cautious. The high volatility of the encryption currency market means that prices can experience rapid and significant fluctuations. When making investment decisions, multiple factors should be considered, including the macroeconomic environment, regulatory trends, and market sentiment.

In the coming days, market participants should closely monitor changes in trading volume and potential price consolidation. This will help determine the sustainability of the current upward trend and the potential depth of any pullbacks. At the same time, it is important to pay attention to the latest developments in global economic policy and the encryption industry, as these factors may have a significant impact on Bit price.