According to Cointelegraph, Bitcoin's price has struggled to surpass the $98,000 resistance level, with increased profit-taking activity contributing to the challenge. Since April 22, Bitcoin has seen daily highs ranging between $93,000 and $97,900, yet it has failed to close above $97,440. The cryptocurrency's price movement has been characterized by volatility within a narrow range, suggesting potential swings toward key price levels in the coming days.
Senior researcher at Glassnode, CryptoVizArt.₿, highlighted that Bitcoin's rally to the $93,000-96,000 range has elevated profit-taking volumes beyond statistical norms. The Realized Profit/Loss ratio indicates that Bitcoin sold at a profit exceeds historical averages, signaling increased selling pressure and potential market tops. Despite the price remaining above $93,000, CryptoVizArt.₿ expressed concerns about the risks involved.
As reported by Cointelegraph, selling activity has intensified near the $95,000 mark as short-term traders capitalize on profits. Crypto analyst Checkmate emphasized that Bitcoin is at a critical "decision point," requiring a breakthrough in this price zone to avoid a significant correction. Currently, 86% of Bitcoin's supply is in profit, a figure that often denotes a bullish phase but also poses risks of heightened profit-taking by short-term holders, potentially leading to market corrections.
Bitcoin must convert the $98,000 resistance into support to aim for higher targets above $100,000. However, the BTC/USD pair needs to close above $95,000 on the daily chart first. On May 4, Bitcoin's price fell below this level due to profit-taking following its rally to $97,000. Positive catalysts for Bitcoin's price include continued demand from spot Bitcoin ETFs, which saw $1.8 billion in net inflows last week, and the upcoming Federal Reserve interest rate decision meeting.
Conversely, bears aim to maintain the $98,000 resistance to potentially drive the price below $92,000. The immediate target below previous range lows is $90,000, where the 100-day and 200-day SMAs converge. Should Bitcoin fall below $90,000, the next significant area of interest lies between $85,000 and $75,000, with a drop to $75,000 erasing gains made after the 90-day tariff pause. This article does not offer investment advice, and readers are encouraged to conduct their own research before making investment decisions.
Alex
