Bitcoin had a great start to May, jumping over 4% in just two days and hitting over $97,000. But now it’s taking a breather, leaving investors wondering what’s next. Let’s look at what a crypto analyst has to say.
A Crypto Analyst’s Take
A well-known analyst on X (formerly Twitter), IT Tech, shared some insights into Bitcoin’s short-term price movements. They pointed out some crucial price levels that could determine Bitcoin’s direction.
Is it a Pause or a Problem?
IT Tech noted that Bitcoin’s recent rally from around $93,600 to over $97,000 might just be a temporary slowdown. The question is: is this a brief pause before another climb, or the beginning of a more significant price drop?
Technical Indicators and Liquidation Zones
IT Tech used the SuperTrend Indicator, which signaled a buy around $94,000 and then a sell around $97,300. However, since Bitcoin is still above $94,000, the overall outlook remains positive.
Looking at liquidation data, IT Tech identified two key price zones:
- $95,200 – $96,000: A significant number of long positions (bets on price increases) are at risk in this range.
- $93,600 – $94,000: Another cluster of long positions could trigger further selling if the price falls.
These zones are likely to act as strong support levels if the price starts to drop.
The $96,000 Decider
IT Tech believes that as long as Bitcoin stays above $96,000, the overall market sentiment will remain cautiously bullish. A break below this level could trigger a wave of liquidations, potentially pushing the price down to $94,000. Conversely, breaking above $97,400 could send Bitcoin as high as $98,500.
What’s Next?
At the time of writing, Bitcoin is trading around $96,463, up slightly over the past week. Trading volume is down, though. The overall sentiment remains positive, fueled by things like increased investment in Bitcoin Spot ETFs and potential positive developments in US-China trade relations. Some analysts are even predicting prices as high as $150,000.
