Bitcoin prices have started May on a similar bullish note to the last week of April, raising the prospect of a push towards the psychologically relevant $100,000 level. With the major cryptocurrency seemingly back on a bullish path, a prominent crypto analyst has emerged with a cautionary tale for BTC investors who are overly optimistic about the currency’s future trajectory.
BTC Price Could Continue to Move Higher If Support Holds
In a post on X Platform on May 2nd, crypto platformer Burak Kesmesi took an interesting view of the current Bitcoin setup, identifying a price level that could be crucial for the coin’s long-term health. The online expert explored BTC’s price structure and its potential future movements based on the Pi Cycle Top indicator.
The Pi Cycle Top indicator is a forecasting tool that uses two major moving averages (a short-term 111-day moving average and a 350-day moving average) to identify the tops of the Bitcoin bull cycle. Historically, a crossover of the short-term MA above the long-term MA has signaled a potential price top in the Bitcoin market.
Currently, these two Pi Cycle Moving Averages are moving in opposite directions, indicating that there may still be some room for Bitcoin price to rise further in this cycle. At the same time, the 111-day moving average can act as a support level, often signaling a buying opportunity for investors looking to enter the market or double down.
As seen in the chart below, Bitcoin price bounces back whenever it reaches above the short-term moving average.
According to CaseMech, this 111-day moving average is hovering around the $91,200 level, which is the most important support zone for Bitcoin price towards the end of the weekly timeframe. The on-chain analyst expects the flagship cryptocurrency to continue its current bullish trend if it manages multiple weekly closes above the short-term moving average.
Bitcoin Price Summary
At the time of writing, BTC is trading at around $95,429, reflecting a gain of just -0.4% in the past 24 hours. While the top cryptocurrency failed to replicate its previous week’s strong form this week, it has made a strong start to the new month.
Market leaders continued their good form by starting the May weekend on a positive note, reaching $97,800 on Friday, May 2. According to data from CoinGecko, the price of Bitcoin has increased by more than 2% in the last seven days.
