Bitcoin Price Levels: BTC reaches a ‘decision Point’

The key takeaways

• Bitcoin has failed to overcome the $98,000 resistance due to increased profit-taking.

• BTC’s price must be above $95,000 per day on the chart in order to push it to $100,000.

Bitcoin’s (BTCOn May 3, the price of BTC failed to surpass resistance level $98,000. BTC’s prices reached daily highs of between $93,000-$97,900 on April 22. But they couldn’t close higher than $97,440.

Bitcoin has been fluctuating in price and confined to a small range during the last couple of days. The markets may see price fluctuations in the coming days due to profit-taking. 

Profits above “statistical levels”

Senior researcher at Glassnode, CryptoVizArt.₿, said Bitcoins’ rally from $93,000 to 96,000 is a sign of a strong market. “pushed the profit-taking volume above the statistical levels.”

The Realized Loss/Profit ratio, in other words shows the amount of Bitcoin sold for a profit is higher than historical norms. It is possible that investors are rushing to lock in profits, which can indicate a potential top of the market and an increase in sell-side pressure.

Below is a chart that shows how to calculate the amount of money you need. “for every dollar realized in loss, more than 9 dollars was realized in profit!” CryptoVizArt.₿ explained, adding:

“The fact that the price is still above $93,000 is very surprising, which in my humble opinion is also risky.”

You can also read about the advantages of using reported by CointelegraphBTC sales have been increasing near $95,000 over the last few days, as traders who are short-term book profits.

Checkmate, Crypto-analyst said Bitcoin’s market at the moment is crucial “decision point,” Bitcoin needs to clear this zone of price in the short term to prevent another significant correction.

Related: Bitcoin price cools going into Fed rate hike week, HYPE, AAVE, RNDR, FET still look bullish

Glassnode’s data indicates that Bitcoin is currently generating 86% of its profit. The percentage of profit is often high. signals a bullish phase. It also shows potential risks. When the supply of profit is greater than 80-90% in historical trends, there are more profit taking, especially by those who hold short term, and this can cause corrections.

Checkmate has pointed out that:

“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.”

Watch out for key Bitcoin prices

Bitcoin’s resistance at $98,000 must be turned into support. higher highs above $100,000.

First, BTC/USD needs to close above $95,000 in the daily chart. BTC dropped to this price on May 4 due to profit taking after the rally to $97,000.

​​One positive catalyst for the bulls could be continued demand from spot Bitcoin ETFs. Bitcoin ETFs registered Farside Investors data shows that $1.8 billion was inflows in the last week.

The Wednesday vote could be a catalyst for another event Fed interest rate decision meeting.

The bears, meanwhile, will try to maintain the resistance of $98,000 to make it more likely that the price can fall below $92,000. Below the range lows, $90,000. This is the convergence of the SMAs 100 and 200 days.

The next area of focus is between $85,000 to $75,000. If you reach $75,000, all your gains would be erased. 90-day tariff pause. 

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.