Bitcoin’s price has been on a bit of a tear lately, pushing towards the $100,000 mark. But one analyst is sounding a note of caution.
A Key Support Level
Analyst Burak Kesmeci recently highlighted a critical support level for Bitcoin. Using the Pi Cycle Top indicator (which uses moving averages to predict Bitcoin’s price peaks), he identified $91,200 as a crucial support zone.
The Pi Cycle Top indicator uses two moving averages: a short-term (111-day) and a long-term (350-day). When the short-term average crosses above the long-term average, it historically signals a potential price peak. Right now, they’re moving in opposite directions, suggesting further upward movement could be possible.
However, the 111-day moving average often acts as a support level. If Bitcoin’s price drops to this level, it tends to bounce back. Kesmeci believes that if Bitcoin can stay above this $91,200 level for several weeks, the upward trend will likely continue.
Bitcoin’s Current State
At the time of writing, Bitcoin is trading around $96,685. While not as explosive as the previous week, it’s still showing positive movement. It hit a high of $97,800 on Friday, May 2nd, and is up over 2% in the last seven days.
