Bitcoin must remain above $95,000 to attempt a rally towards its all-time high of $109K, with critical analysis highlighting risks of a correction if it fails. The upcoming Federal Reserve decision on May 7 could influence price movements, while market sentiment improves as Bitcoin nears the $100,000 benchmark.
Bitcoin’s price needs to stay above $95,000 if it hopes to revisit its all-time high of $109,000, according to analysts from Bitfinex. They warn that failure to maintain this level could lead to a deeper price correction. Several experts had previously told Cointelegraph that June could potentially see Bitcoin breaking new records. This speculation comes at a particularly key moment, just ahead of the Federal Reserve’s upcoming decision on May 7, which might sway market movements in the short term.
The $95,000 level is currently crucial; Bitfinex explains that it’s acting as the lower limit of a significant trading range observed between November 2024 and February 2025. If Bitcoin can hold above this mark, it could suggest a so-called “structural shift” back into bullish territory, setting the stage for another attempt at those all-time highs. Presently, Bitcoin trades around $96,730, marking a 3.03% increase in the last 24 hours based on CoinMarketCap figures.
Should Bitcoin slip below $95,000, analysts caution that the area could turn into resistance, increasing the chances of a quick rejection and triggering corrective pricing behaviour. They are clear that the next few days will be pivotal for Bitcoin’s trajectory—will it soar in a sustained breakout or face levels of support lower down?
Interestingly, if Bitcoin’s rally persists, many traders could find themselves offside. Crypto analyst Thomas Fahrer raised a red flag about $400 million worth of short positions on Bitcoin being under threat if the price hits $98,000. “Send it,” he remarked in a post on X on May 7, signalling a sense of urgency among traders.
Predictions of Bitcoin reaching new highs by June are aligning with current market behaviour. Jamie Coutts, the chief crypto analyst at Real Vision, is optimistic about a target of $123,000 by that month. Likewise, Cory Klippsten, CEO of Swan Bitcoin, also hints at a 50% probability of Bitcoin hitting new highs before June wraps up.
For context, Bitcoin has generally performed slightly negatively in June, with an average decline of -0.35% since 2013. Additionally, the impending Federal Reserve interest rate decision on May 7 could swirl in some volatility for the crypto market both before and after the result becomes public. Notably, recent data from CME Group’s FedWatch Tool suggests that the odds for a rate cut appear minimal.
On a brighter note, market sentiment is beginning to shift positively as Bitcoin nudges closer to the psychologically important $100,000 mark. The Crypto Fear & Greed Index, which gauges market emotions, has surged further into “Greed” territory with an increase of 8 points, now sitting at a score of 67.
To be clear, this article is not a guide for investment. Every trading choice comes with its risks and potential consequences, so thorough research is always recommended before diving in.
