nickthomas2@benzinga.com
4 min read
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As volatility returns to both traditional and cryptocurrency markets, traders and investors need to closely monitor key technical levels that could determine the next major directional move. This week’s price action suggests potential shifts in market sentiment that warrant careful attention.
The Nasdaq futures (NQ1!) are currently experiencing significant technical pressure, having rejected at the psychologically important yearly open of 21,475. Sunday’s futures open brought a notable gap down, placing the tech-heavy index at a critical decision point.
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21,192: Currently being retested, this old swing low represents an immediate support zone. A decisive break below could signal a broader sentiment shift from bullish to bearish market conditions.
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20,690: If support at 21,192 fails, this swing low becomes the next critical level where buyers might emerge.
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Weekly Gap (May 9): The unfilled gap from earlier this month presents three potential target zones:
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Gap high: 20,398.50
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Gap midpoint: 20,272.50
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Complete gap fill: 20,146.50
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These gap levels often act as magnets for price action, particularly in futures markets where historical gaps frequently get filled.
Bitcoin is similarly facing technical challenges after breaking back into a previous trading range. Despite an initial surge around Sunday’s 6 p.m. ET futures open that briefly tested the previous Monday’s high, sellers quickly rejected the advance.
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Four-Hour Structure: While still technically bullish, warning signs of a potential bearish flip are emerging on the four-hour timeframe. Traders should watch for potential break of the higher low pattern that has characterized Bitcoin’s recent movement.
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100,678: The previous week’s low represents immediate support. A break below this level could accelerate selling pressure.
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95,000-97,000: A four-hour demand block sits in this range, potentially offering stronger support if the selling continues.
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93,548: Perhaps the most critical level of all—the yearly open. Maintaining price action above this threshold is essential for preserving 2025’s overall bullish structure. A break below could signal a more significant trend reversal.
