Bitcoin’s price action is currently teetering on a precipice, with its recent inability to break the $98,000 resistance level sparking a flurry of activity in the crypto markets. As of May 3, BTC prices have struggled to close above $97,440, leaving investors in a state of high anticipation. Analysts suggest that a daily close above $95,000 is crucial for Bitcoin to potentially make a run toward the coveted $100,000 mark.
Choppy Waters and Profit-Taking
The current Bitcoin landscape is marked by heightened volatility and a flurry of profit-taking. According to CryptoVizArt.₿, a senior researcher at Glassnode, Bitcoin’s rally to the $93,000-$96,000 range has led to an unprecedented level of realized profits. “The Realized Profit/Loss ratio indicates that the volume of Bitcoin being sold at a profit exceeds historical norms, suggesting increased selling activity,” he explained. This surge in profit-taking could potentially signal a market top, increasing sell-side pressure. As explored in our recent coverage of Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow, institutional interest has been a significant factor in driving recent price movements.
The BTC/USD pair has exhibited choppy behavior, with daily candle highs oscillating between $93,000 and $97,900. Investors are keenly watching price movements, aware that any significant shift could set the stage for dramatic swings in either direction. Crypto analyst Checkmate has described the current market as being at a “decision point,” underscoring the need for Bitcoin to clear this critical price zone to avoid a major correction.
Key Levels to Watch and Potential Catalysts
Bitcoin’s current supply in profit stands at 86%, a figure that often signals bullish momentum. However, it also raises concerns about potential corrections, particularly if short-term holders decide to lock in gains. Checkmate notes, “We’re sitting right in the middle of a decision point, and all it will take is one big red or green candle from here to convince people of a lower high or bull continuation, respectively.”
In the coming days, the $95,000 and $98,000 levels will be crucial markers for traders and investors. A daily close above $95,000 could pave the way for Bitcoin to challenge the $100,000 milestone. On the flip side, failure to surpass $98,000 could embolden bears aiming to push prices below $92,000, with $90,000 as a key support area due to the convergence of the 100-day and 200-day simple moving averages (SMAs). For more insights into the market dynamics, see Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception.
Potential catalysts for a bullish push include continued demand from spot Bitcoin ETFs, which saw $1.8 billion in net inflows last week. Additionally, the upcoming Federal Reserve interest rate decision could provide further impetus for price movement. Meanwhile, bears will remain focused on maintaining the $98,000 resistance, with eyes set on potentially driving the price down to $85,000 or even $75,000—levels that would erase gains from the recent rally.
Uncertainty Looms Large
As Bitcoin dances around these crucial price levels, the market remains on edge, with investors and analysts alike watching closely for any signs of a decisive move. While the potential for a bullish breakout exists, the risks of a correction cannot be ignored, especially with profit-taking volumes reaching statistical highs.
The outcome of this “decision point” remains uncertain, raising questions about Bitcoin’s near-term trajectory. Will it ascend to new heights, or will profit-taking pressures and bearish forces prevail? As the market navigates this precarious juncture, one thing is certain: all eyes are on Bitcoin, waiting to see which way the pendulum will swing.
Source
This article is based on: Watch these Bitcoin price levels as BTC meets ‘decision point’
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
