The market is at a critical point. Increased volatility and macroeconomic factors may lead to either a breakout or a correction.

#MarketDownturn

Bitcoin on the verge of $100K: is the market preparing for a breakthrough or a correction?

As of today, BTC is trading in the range of $96,600–$97,500, approaching the psychological level of $100,000. This is the highest figure in the last two months, a rise of ~30% from April's lows.

Key factors:

Institutional support: Morgan Stanley plans to launch spot cryptocurrency trading on the E*Trade platform, and Strategy (MSTR) has announced plans to purchase more BTC through a $21 billion stock issuance.

Technical analysis: BTC has broken out of a descending channel and a “flag” pattern, signaling bullish momentum. However, low trading volume raises caution. Key resistance levels are $100,000 and $107,000; supports are $92,000 and $85,000.

Macroeconomics: Stronger-than-expected employment data in the US (177,000 new jobs in April) may impact the Fed's policy, which, in turn, will affect the crypto market.

What does this mean for traders?

Bullish scenario: Continued growth to $100K and above, provided that positive sentiment and support from institutional investors are maintained.

Bearish scenario: Possible correction to support levels of $92K or $85K, especially if trading volumes remain low.