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The price of Bitcoin is just a few hundred dollars away from placing $400 million in short positions at risk of liquidation.
Key Points:
Bitcoin's price must remain above $95,000 to have a chance to retest its all-time high of $109,000; crypto analysts warn that failure to hold may lead to a deeper correction.
Many crypto analysts told Cointelegraph in March that Bitcoin may have a chance to reach new record levels in June.
The upcoming decision by the Federal Reserve on May 7 may affect Bitcoin's price movement in the coming days.
Crypto analysts say that Bitcoin needs to continue staying above the $95,000 level to have a chance to rise again and retest its all-time high, or face a deeper correction.
This comes after many analysts told Cointelegraph earlier this year that June could be Bitcoin's month.
Bitcoin
$96,919
Reaching its all-time highs.
Bitfinex stated in a market report issued on May 6: "The $95,000 level - currently undergoing consolidation - is a critical pivot point, serving as the minimum range of three months that defined the market structure between November 2024 and February 2025."
Staying above $95,000 will indicate a 'structural shift' for Bitcoin.
Bitfinex stated that staying above $95,000 will indicate a 'structural shift' back to the bullish area, with a potential upward trend towards retesting its all-time highs.
Bitcoin reached its all-time high of $109,000 on January 20, just hours before the inauguration of US President Donald Trump.
At the time of this report, Bitcoin is trading at $96,730, up 3.03% over the past 24 hours, according to CoinMarketCap data.
However, analysts at Bitfinex stated that if Bitcoin fails to stay above the $95,000 level, it may trend towards further declines.
"However, failure to hold may turn the area into resistance again, increasing the risk of rejection in the short term and another phase of corrective price movement."
They said that the next few days will determine whether Bitcoin will trend 'towards a sustainable breakout or head towards retesting lower support areas.'
Cryptocurrencies, Bitcoin price, markets
Bitcoin's price rose by 2% over the past seven days. Source: CoinMarketCap
That said, if the rise of Bitcoin continues, it may surprise many traders. Crypto analyst Thomas Fahrer stated in a post on May 7 that $400 million in short positions in Bitcoin are at risk of liquidation at a price level of $98,000. Fahrer added, "They sent it."
The price of Bitcoin is approaching the timeframe that many analysts predicted for new highs earlier this year. On March 28, Jimmy Coats, the chief crypto analyst at Real Vision, predicted the best expected price at $123,000 by June.
Related: Bitcoin price rose 1550% the last time the 'Bitcoin Risk' gauge dropped to this low level.
Around the same time, Swan Bitcoin CEO Corey Clipston stated that Bitcoin has a '50% chance' of reaching new record levels before the end of June.
Since 2013, Bitcoin's average performance in June has been slightly negative at -0.35%.
The interest rate decision to be made by the US Federal Reserve on May 7 may also impact the price of Bitcoin.
Announcements often see volatility in the cryptocurrency market before and after results are published. However, the latest data from CME Group's FedWatch tool indicates that the chances of interest rate cuts in the futures market are slim.
Meanwhile, overall market sentiment has become more positive as Bitcoin's price approaches the psychological level of $100,000.
The crypto fear and greed index, which measures overall market sentiment, rose again over the past 24 hours to the 'greed' zone, jumping 8 points to a score of 67.
