Bitcoin started May with a bullish momentum similar to the last weeks of April, creating a psychological boost towards the $100,000 mark. With the leading cryptocurrency seemingly back on an upward trend, a prominent crypto analyst has issued some warnings for extremely optimistic BTC investors regarding the future trajectory of this coin.
BTC Price May Continue to Rise If Support Holds
In a post on May 2nd on the X platform, crypto expert Burak Kesmeci provided an intriguing outlook on the current Bitcoin setup, identifying a price level that could be very important for the long-term health of this coin. The online expert delved into BTC's price structure and potential future fluctuations based on the Pi Cycle Top indicator.
The Pi Cycle Top indicator is a forecasting tool that uses two key moving averages (the short-term 111-day moving average and the 350-day moving average) to identify the peak of Bitcoin's bullish cycle. Historically, the crossing of the short-term MA above the long-term MA signals a potential price peak in the Bitcoin market.
According to the current situation, these two Pi Cycle moving averages are moving in opposite directions, suggesting that Bitcoin's price may still have some room for growth in this cycle. At the same time, the 111-day moving average could serve as a support level, often signaling buying opportunities for investors looking to enter the market or double down.
As observed in the chart below, the price of Bitcoin tends to recover whenever it touches the short-term moving average.
According to Kesmeci, this 111-day moving average is fluctuating around the $91,200 mark, which is the most significant support zone as the price of Bitcoin approaches weekly closing levels. The online chain analyst expects this leading cryptocurrency to continue its current upward momentum if it manages to close above the short-term moving average in multiple weekly closes.
Overview of Bitcoin Prices
As of the time of writing this article, the price of BTC is around $96,685, reflecting a mere 0.2% increase in the past 24 hours. Although this leading cryptocurrency has not replicated last week's scorching performance this week, it has had a strong start to the new month.
This market-leading coin continues its good growth momentum in May by starting the new week with positive growth, reaching a high of $97,800 on Friday, May 2nd. According to data from CoinGecko, the price of Bitcoin has increased by more than 2% in the past seven days.