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Bitcoin must hold above $95K or face short-term rejection: Bitfinex

Key takeaways

  • Bitcoin must maintain above $95,000 to have a chance at retesting its $109,000 all-time high; failure to hold could lead to a deeper correction, crypto analysts warn.
  • Several crypto analysts told Cointelegraph in March that Bitcoin may have a chance of reaching new all-time highs in June.
  • The upcoming Federal Reserve decision on May 7 could influence Bitcoin’s price movement over the coming days.

Bitcoin needs to continue to hold above the $95,000 level for a chance to climb back and retest its all-time high, or face an even deeper correction, crypto analysts say.

It comes after several analysts told Cointelegraph earlier this year that June could be the month Bitcoin (BTC) reaches new all-time highs.

“The $95,000 level — currently under consolidation — is a critical pivot point, acting as the lower boundary of a three-month range that defined market structure between November 2024 and February 2025,” Bitfinex said in a May 6 markets report.

Bitcoin holding above $95K would signal a “structural shift”

Bitfinex said that Bitcoin holding above the $95,000 level would signal a “structural shift” back into bullish territory, with a potential upward trend toward retesting its all-time highs. 

Bitcoin reached its $109,000 all-time high on Jan. 20, just hours before US President Donald Trump’s inauguration.

At the time of publication, Bitcoin is trading at $96,730, up 3.03% over the past 24 hours, according to CoinMarketCap data. 

However, Bitfinex analysts said if Bitcoin fails to hold above $95,000, it could be headed for further downfall.

Failure to hold, however, could turn the region into resistance once more, raising the risk of a short-term rejection and another leg of corrective price action.

They said the next several days will determine whether Bitcoin will be heading “into a sustained breakout or resolves into a retest of lower support zones.”

Bitcoin is up 2% over the past seven days. Source: CoinMarketCap

However, if Bitcoin continues the rally, it may catch many traders offside. Crypto analyst Thomas Fahrer said in a May 7 X post that $400 million of Bitcoin short positions are at risk of liquidation at the $98,000 price level. “Send it,” Fahrer said.

Bitcoin is approaching the timeframe many analysts predicted for new highs earlier this year. On March 28, Real Vision chief crypto analyst Jamie Coutts projected a best-case target of $123,000 by June.

Around the same time, Swan Bitcoin CEO Cory Klippsten said that Bitcoin has a “50% chance” of reaching new all-time highs before the end of June.

Since 2013, Bitcoin’s average performance in June has been slightly negative at -0.35%.

The upcoming Federal Reserve interest rate decision on May 7 could also have an impact on Bitcoin’s price.

The announcement often sees crypto market volatility both before and after the results are published. However, the latest data from CME Group’s FedWatch Tool indicates that the futures market sees minimal odds of a rate cut.

Meanwhile, overall market sentiment is becoming more positive as Bitcoin’s price approaches the psychological $100,000 price level.

The Crypto Fear & Greed Index, which measures overall market sentiment, has spiked again over the past 24 hours, further into “Greed” territory, jumping 8 points to a score of 67.

Author

Cointelegraph Team

Cointelegraph Team

Cointelegraph

We are privileged enough to work with the best and brightest in Bitcoin.

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