Key Insights on Bitcoin’s Recent Performance

• Bitcoin couldn’t breach the $98,000 mark, despite rising profits.

• For BTC to reach $100,000, prices need to go above $95,000 on the daily chart.

On May 3rd, Bitcoin (BTC) struggled at the resistance level of $98,000. Since April 22nd, prices have fluctuated, with daily candle highs between $93,000 and $97,900, but not exceeding $97,440.

In recent days, Bitcoin’s price movements have been somewhat erratic but narrow. With increasing profits and a good amount of profit supply, we’re seeing some volatile fluctuations as BTC approaches key price levels.

Understanding Recent Market Trends

According to Cryptovizart.₿, a Senior Researcher at GlassNode, the recent rally in Bitcoin has made profits surpass what’s typical at around $93,000-96,000. This suggests that the ratio of realized profit to loss indicates a substantial amount of Bitcoin sold at a profit, surpassing historical norms.

This trend could mean more selling activity as investors start cashing in, which often signals potential leadership in the market while also increasing selling pressure.

A chart displayed shows that for every dollar realized as a loss, over $9 has been realized in profits. Cryptovizart.₿ remarked, “It’s kind of surprising the price is still above $93,000, and in my opinion, there’s a risk.”

Recently, BTC has approached the $95,000 mark as short-term traders began taking profits. Crypto analyst Checkmate also chimed in, mentioning that Bitcoin is at a critical “decision point” and needs to surpass this price range soon to avoid a significant downturn.

According to data from GlassNode, Bitcoin’s profit supply stands at 86%, a high figure that often signals a bullish trend but also implies possible risks. Historically, when profit supply exceeds 80-90%, it can sometimes indicate a surge in profit-taking, particularly from short-term holders, which can lead to corrections.

Checkmate pointed out, “We’re in the middle of a decision point. A substantial red or green candle could sway opinions towards whether we see a new high or a continuation of bullish activity.”

Bitcoin Price Levels to Monitor

To potentially reach $100,000, Bitcoin needs to flip the resistance level at $98,000. However, it should first exceed $95,000 on the daily chart. Notably, BTC prices dipped below this level on May 4th.

A positive factor for bulls could be ongoing demand from spot Bitcoin ETFs, which reportedly saw a net inflow of $1.8 billion last week based on investor data.

The upcoming Fed rate decision meeting could also have implications for the market. On the other hand, bearish traders will likely keep the $98,000 resistance intact and might push prices down to below $92,000. A direct target could be around $90,000, which corresponds with key convergence points from the last 100 and 200 days.

Should prices fall below $90,000, the next areas to watch would be between $85,000 and $75,000. If it hits $75,000, it would essentially wipe out all profits accumulated after a 90-day tariff pause.

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any financial decisions.