Bitcoin Surges 2% In May, Analyst Warns Of Key Support Level At $91,200

Bitcoin has begun the month of May with a bullish momentum similar to the final weeks of April, pushing towards the psychologically significant $100,000 level. As the premier cryptocurrency appears to be back on a bullish track, a prominent crypto analyst has issued a cautionary note for investors who are overly optimistic about Bitcoin's future trajectory.

In a May 2 post on the X platform, crypto platform Burak Kesmeci highlighted a critical price level that could be pivotal for Bitcoin's long-term health. Kesmeci analyzed Bitcoin's price structure and potential future movements using the Pi Cycle Top indicator, a forecasting tool that employs two major moving averages—a short-term 111-day moving average and a 350-day moving average—to identify the peaks of Bitcoin bull cycles. Historically, a crossover of the short-term moving average above the long-term moving average signals a potential price top in the Bitcoin market.

Currently, these two Pi Cycle moving averages are moving in opposite directions, suggesting that Bitcoin's price might still have room for upward growth in this cycle. The 111-day moving average can act as a support level, often signaling buying opportunities for investors looking to enter the market or double down. According to Kesmeci, this 111-day moving average is hovering around the $91,200 level, which represents the most crucial support zone as the Bitcoin price approaches a close on the weekly timeframe. The on-chain analyst expects the flagship cryptocurrency to continue its current upward price run if it manages multiple weekly closes above the short-term moving average.

As of this writing, the price of Bitcoin stands at around $96,685, reflecting a mere 0.2% increase in the past 24 hours. While the premier cryptocurrency has not replicated its previous week’s red-hot form this week, it did make a strong start to the new month. The market leader continued its good May form by starting the weekend on a positive note, traveling as high as $97,800 on Friday, May 2. The Bitcoin price is up by more than 2% in the last seven days.

In summary, the current bullish momentum of Bitcoin is supported by the 111-day moving average, which acts as a crucial support level at $91,200. If Bitcoin manages to close above this level on a weekly basis, it could continue its upward trajectory. However, investors should remain cautious and monitor the market closely, as the cryptocurrency landscape is known for its volatility and unpredictability. The analyst's forecast suggests that Bitcoin has the potential for further growth, but this will depend on its ability to maintain support at the identified level.