Bitcoin has been rallying into May, eyeing the $100k mark. Analyst Burak Kesmeci warns that the crucial support level sits at $91,200, with market behaviour indicating Bitcoin could rise if certain conditions are met. Currently, Bitcoin trades around $96,685, marking a 2% increase over the past week.
Bitcoin has kicked off May with a bullish vibe, reminiscent of what we saw in late April, raising hopes of hitting the coveted $100,000 mark. But there’s a cautionary note from a well-known crypto analyst that those with a rosy outlook on Bitcoin should heed closely. This warning highlights a critical support level for BTC that could dictate its near-term trajectory.
Burak Kesmeci, a crypto analyst, shared a compelling insight on May 2 via the X platform, pinpointing an important price level for Bitcoin. Diving into the cryptocurrency’s price movements, he examined the Pi Cycle Top indicator, a tool that has historical value in forecasting the highs of Bitcoin’s price cycles. This indicator employs two key moving averages: a short-term 111-day and a long-term 350-day average. Typically, a crossover where the short-term surpasses the long-term implies a peak.
Currently, these two moving averages are diverging, suggesting Bitcoin might still see some upward movement in this cycle. Notably, the 111-day moving average is particularly significant, often acting as a support level that signals when investors might buy in. As seen in past trends, Bitcoin has a tendency to bounce back when it encounters the short-term moving average, which provides a glimmer of hope for dips in price.
Kesmeci pointed out that this 111-day moving average is currently aligned with the $91,200 mark, which he identifies as the key support zone. For Bitcoin to sustain its upward trajectory in the market, it must achieve successive weekly closes above this crucial level. Without these closures, investors may find themselves in a vulnerable position.
Looking at the current scenario, the price of Bitcoin is sitting at about $96,685—a slight bump of 0.2% in the past day. While this isn’t quite the scorching performance seen last week, the cryptocurrency’s journey into May has shown solid promise. The market maintained a positive course into the weekend, reaching a high of $97,800 on Friday, May 2. Thus far, over the past week, Bitcoin has managed a commendable surge of more than 2%, with the eyes of investors keenly fixed on what’s next.
