Bitcoin Must Hold $95,000 to Avoid Correction, Analysts Warn
1min read Bitcoin is currently at a critical juncture, with analysts warning that it must maintain a price above $95,000 to avoid a deeper correction. According to bitfinex, the $95,000 level is a pivotal point that has defined the market structure over the past three months. Holding above this level could signal a structural shift back into bullish territory, potentially leading to a retest of Bitcoin's all-time high of $109,000. However, failure to maintain this level could result in a short-term rejection and further corrective price action.
Bitfinex's analysis comes as several analysts have predicted that June could be the month Bitcoin reaches new all-time highs. Real Vision chief crypto analyst Jamie Coutts projected a best-case target of $123,000 by June, while Swan Bitcoin CEO Cory Klippsten said that Bitcoin has a “50% chance” of reaching new all-time highs before the end of June. However, these are forecasts and not guaranteed outcomes.
The upcoming Federal Reserve decision on May 7 could also influence Bitcoin’s price movement. While the futures market sees minimal odds of a rate cut, the announcement often sees crypto market volatility both before and after the results are published. Overall market sentiment is becoming more positive as Bitcoin’s price approaches the psychological $100,000 price level, with the Crypto Fear & Greed Index spiking into “Greed” territory.
Bitcoin is currently trading at $96,730, up 3.03% over the past 24 hours. The next several days will determine whether Bitcoin will be heading “into a sustained breakout or resolves into a retest of lower support zones.” If Bitcoin continues the rally, it may catch many traders offside, with $400 million of Bitcoin short positions at risk of liquidation at the $98,000 price level, according to crypto analyst Thomas Fahrer.
