Bitcoin needs to maintain a price above $95,000 to continue its recovery and retest the all-time high (ATH). Otherwise, it may face a deeper correction, according to cryptocurrency analysts.
Previously, some analysts shared that June could be the time Bitcoin sets a new ATH.
'The $95,000 price level — currently in the accumulation phase — is a key pivot point, serving as the lower boundary of the three-month range, shaping the market structure from November 2024 to February 2025,' Bitfinex noted in its market report on May 6.
Bitcoin surpasses $95,000: Signal for a 'structural change'
According to Bitfinex, if Bitcoin remains above $95,000, it will mark a significant 'structural change', bringing the market back to an upward trend with the potential to retest the ATH.
This digital currency once reached a record high of $109,000 on January 20, just hours before the inauguration of U.S. President Donald Trump.
At the current time, Bitcoin is trading at $96,730, up 3.03% in the last 24 hours, according to data from Bitcoin Magazine.
However, Bitfinex analysts warn that if Bitcoin cannot maintain the $95,000 level, this area could quickly turn into a resistance zone, increasing the risk of a short-term rejection and leading to a new price correction.
'Failing to maintain this price level could turn the area into a barrier, increasing the risk of rejection and a deeper price drop,' Bitfinex noted.
Experts also suggest that the coming days will be crucial in determining whether Bitcoin can make a strong breakout or will revert to testing lower support zones.
The upward momentum could catch many traders by surprise.
If Bitcoin continues its upward momentum, this could put many traders at risk of being 'caught out'. Cryptocurrency analyst Thomas Fahrer pointed out in a post on X on May 7 that over $400 million in Bitcoin short positions are at risk of being liquidated if the price reaches $98,000. 'Let it happen,' Fahrer writes.
Bitcoin is currently approaching the timeframe that many experts predict is when it will hit a new high. On March 28, Jamie Coutts, the chief cryptocurrency analyst at Real Vision, set an optimistic target of $123,000 for June.
Related: Bitcoin's price once surged 1,550% when the 'BTC risk-off' index dropped to levels similar to the current one.
At the same time, the CEO of Swan Bitcoin, Cory Klippsten, also commented that Bitcoin has a '50% chance' of reaching a new all-time high before the end of June.
However, history shows that Bitcoin's average performance in June since 2013 is negative 0.35%.
Fed's interest rate decision and its impact on the market
The upcoming decision on interest rates by the Federal Reserve (Fed) on May 7 is also expected to impact Bitcoin's price. Typically, announcements from the Fed cause significant volatility in the cryptocurrency market both before and after the results are released. However, data from CME Group's FedWatch tool indicates that the likelihood of the Fed cutting interest rates is very low.
In this context, market sentiment is becoming more positive as the price of Bitcoin approaches the important psychological threshold of $100,000.
The Fear & Greed Index for cryptocurrencies, a measure of market sentiment, has surged sharply in the past 24 hours, moving deeper into the 'Greed' zone with an increase of 8 points, reaching 67.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.