As it trades just above $96,000, up 2.14% on the day, Bitcoin is getting close to a turning point. It is currently in a technical vacuum following a robust recovery in late April; neither significant resistance nor obvious support is located right above it or below. A significant volatility spike that determines the market’s course for weeks or even months frequently precedes this kind of price structure.
If momentum returns, Bitcoin has the potential to soar higher because there are not any nearby resistance zones. However, the opposite is also true: the asset is extremely susceptible to steep declines in the event that bulls lose control because there is not an immediate support buffer until approximately $89,000.
With the RSI at 68, which is getting close to the overbought threshold, momentum is still strong but may be peaking. But the volume remains low, which is a warning sign. In the absence of increased participation, this breakout could turn into a bull trap. The course of the subsequent volatility spike will determine everything that happens next.
A new leg up that might target the psychological $100,000 level and beyond could be started by a clean break above $97,000 with high volume. Alternatively, a collapse below the $93,000-$92,000 range would probably lead to $89,000 or even lower, indicating the end of this rally and possibly igniting a general market correction.
Bitcoin is perched on the edge of a tight market. Since no safety net is in sight, the next big move — up or down — will not merely be another leg; rather, it will determine the framework for the cycle’s subsequent phase. Hold on tight because this level of calm is short-lived.
