Bitcoin’s price recently encountered significant resistance, failing to surpass the $98,000 mark, amid increased profit-taking. The crucial takeaway for investors is that Bitcoin must close above $95,000 on the daily chart to facilitate a potential push towards the coveted $100,000 level.
Since April 22, Bitcoin has experienced a series of daily candle highs ranging from $93,000 to $97,900, yet has struggled to close above $97,440, resulting in choppy price action confined within a narrow range.
The current market conditions suggest we may witness volatile price swings as the market approaches key price levels. Senior researcher at Glassnode, CryptoVizArt, noted that the recent rally in Bitcoin’s price has led the profit-taking volume to exceed historical norms, with a Realized Profit/Loss ratio indicating a heightened selling activity.
This data implies that for every dollar realized in loss, more than nine dollars were realized in profit, highlighting a potential market top and increased pressure on sellers.
“The fact that the price is still above $93,000 is very surprising, which, in my opinion, is also risky,” stated CryptoVizArt.
Moreover, increased BTC selling has been reported near the $95,000 level as short-term traders capitalize on their profits. Analyst Checkmate emphasized that Bitcoin stands at a critical ‘decision point’ and must overcome the $95,000 threshold to avoid a significant price correction.
The current supply in profit stands at 86%, historically indicating a bullish phase but also presenting potential risks. When the profit supply surpasses 80-90%, as it is now, profit-taking increases, often resulting in market corrections.
“We’re sitting right in the middle of a decision point; one big red or green candle is all it will take to trigger a market reaction,” Checkmate added.
Critical Price Levels to Watch
To target higher highs above the $100,000 mark, Bitcoin needs to convert the $98,000 resistance into support. A daily close above $95,000 is essential, especially after its recent drop below this level, prompted by profit-taking.
Furthermore, spot Bitcoin ETFs have reported net inflows of $1.8 billion last week, potentially serving as a bullish catalyst. Traders are also anticipating the upcoming Federal Reserve interest rate decision meeting, which may introduce additional volatility.
While bulls will aim to maintain momentum above the key resistance, bears are likely to attempt to hold the $98,000 level, potentially pulling prices down to the $90,000 area, where the 100-day and 200-day SMAs converge. If prices dip below $90,000, the next critical zone of interest lies between $85,000 and $75,000, a level that could erase gains accrued in the wake of the 90-day tariff pause.
Disclaimer: This article does not constitute investment advice. All investments carry risks, and individuals should conduct their own research before making any financial decisions.
