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Bitcoin Drops 1% After Reaching $97,996

Coin WorldMonday, May 5, 2025 10:33 am ET

1min read

Bitcoin (BTC) experienced a decline over the weekend, slipping below $95,000 after facing rejection at a key resistance level on Friday. This allowed sellers to take control, resulting in a 1% drop in the past 24 hours, with the cryptocurrency trading around $94,150. Analysts suggest that BTC is returning to its consolidation range and could trade between $90,000 and $96,000 in the short term.

The weekend's decline came after BTC reached an intraday high of $97,996 on Friday. However, the momentum stalled, leading to a marginal drop on Saturday and a 0.99% fall on Sunday, settling at $93,802. The previous week had started on a bullish note, with BTC rising 1.29% to settle at $95,010. However, it lost momentum on Tuesday, falling 0.70% and slipping below $95,000 to settle at $94,341.

Throughout the week, BTC faced volatility as buyers and sellers struggled to establish control. On Wednesday, sellers gained the upper hand, resulting in a marginal decline and settling at $94,160. Sentiment turned bullish on Thursday as BTC rallied over 2%, surging past $96,000 and settling at $96,452. Buyers retained control on Friday, pushing the price higher to reach an intraday high of $97,996 before declining to settle at $96,939, ultimately registering an increase of 0.50%. Despite the positive sentiment, BTC lost momentum over the weekend, dropping 0.98% on Saturday and 1.67% on Sunday, slipping below $95,000 and settling at $94,387. The current session sees BTC marginally up as buyers and sellers struggle to establish control.

Popular trader CrypNeuovo presented a short-term bull case, stating that a new local high of $98,000 could see some liquidations after reclaiming previous range highs. Another trader and analyst, Daan Crypto Trades, pointed to a new "gap" to the upside on CME Group’s Bitcoin Futures Markets as a potential price magnet, noting that these gaps have generally been closed within 1-3 days recently.

According to the analyst's forecast, BTC's momentum has stalled in recent sessions, struggling to build momentum for one final push and break past the crucial $100,000 mark. The current price action suggests that BTC is consolidating, and traders should watch for key levels to determine the next direction. The short-term outlook remains uncertain, with both bullish and bearish scenarios possible depending on how BTC reacts to key support and resistance levels.

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