Bitcoin continues to exhibit a bullish trend that began in April, gaining more than 4% in the initial days of May as it surpasses the $97,000 mark. Following this recent surge, the leading cryptocurrency is now experiencing a slight retracement, leaving investors to ponder its next movement within the current market landscape.
In light of these developments, a notable crypto analyst utilizing the X platform, known as IT Tech, has provided insightful observations regarding Bitcoin’s market structure, pinpointing crucial price levels that could influence the asset’s short-term trajectory.
Bitcoin Cools Off After Price Rally: Breather or Bull Trap?
According to a recent tweet by IT Tech on May 2, Bitcoin appears to be pausing after its impressive ascent from $93,600 to over $97,000. As market traders remain vigilant, the question arises whether this is merely a cooling-off phase before another upward movement or a precursor to a more significant correction. IT Tech has shared valuable technical insights and on-chain data regarding potential price targets.
The analyst notes that the Bitcoin SuperTrend Indicator signaled a buy when prices reached $94,000, followed by a sell signal hit at $97,300. Still maintaining above $94,000, the Bitcoin market structure, alongside the SuperTrend Indicator, remains in bullish territory.
Moreover, liquidation data suggests potential volatility points, particularly with long liquidation zones identified between the $95,200 and $96,000 price range, as well as another concentration of orders between $93,600 and $94,000. These areas are expected to serve as robust support in the event of unforeseen downturns.
When predicting Bitcoin’s next move, IT Tech emphasizes that market sentiment remains cautiously bullish, provided the $96,000 support is upheld. A decisive drop below this level could trigger a liquidation cascade, pushing prices back toward $94,000. Conversely, if Bitcoin breaks above $97,400, it may rally further, potentially reaching as high as $98,500.
What’s Next for Bitcoin?
As of the latest updates, Bitcoin is trading at $96,463, reflecting a 1.64% increase over the previous week. However, the asset’s trading volume has decreased by 21.82%, now valued at $26 billion.
Despite these fluctuations, bullish sentiment continues to dominate the market, bolstered by relevant developments—including significant Bitcoin Spot ETF inflows. Additionally, the United States’ willingness to negotiate a new trade deal with China may alleviate concerns surrounding international trade tariffs.
As Bitcoin maintains its upward trajectory, analysts are issuing increasingly optimistic predictions, with estimates suggesting potential price targets reaching as high as $150,000.
