Bitcoin maintains its bullish form from April as it gains by over 4% in the first two days of May to surge above $97,000. Following this recent gain, the premier cryptocurrency is experiencing a minor retracement as investors attempt to decipher the current market phase.
Meanwhile, a prominent crypto analyst with the X handle IT Tech has shared some valuable insights on Bitcoin’s market structure, highlighting the key price levels that could decide the asset’s movement in the short term.
Bitcoin Cools Off After Price Rally: Breather Or Bull Trap?
According to IT Tech in an X post on May 2, Bitcoin appears to be catching its breath following a price rally from $93,600 to above $97,000. As market traders await to see if this will be a mere cooling period before another upswing or the start of a deeper price correction, IT Tech has shared some helpful technical and on-chain insights on potential price targets.
The analyst states that the Bitcoin SuperTrend Indicator had printed a buy signal when prices hit $94,000, followed by a sell signal at $97,300. However, with market prices still above $94,000, the Bitcoin market structure and SuperTrend Indicator remain bullish.
Meanwhile, liquidation data has also hinted at potential points for price volatility. Most notably, IT Tech states there are long liquidation zones between the $95,200 – $96,000 price region and another dense cluster of orders at the $93,600 – $94,000 price region. Both regions are expected to act as strong price supports in the case of an unexpected decline.
In determining Bitcoin’s next move, IT Tech says that market sentiment remains cautiously bullish as long as the $96,000 support level remains valid. This is because a decisive price fall below this level would trigger a liquidation cascade pushing prices back to $94,000. Meanwhile, another price breakout above $97,400 to allow Bitcoin to trade as high as $98,500.
What’s Next For Bitcoin?
At press time, Bitcoin trades at $96,463, reflecting a 1.64% gain in the past seven days. Meanwhile, the asset’s trading volume is down by 21.82% and valued at $26 billion.
As earlier stated, bullish sentiment continues to ravage the market as indicated by recent developments, including the surge in Bitcoin Spot ETF inflows. Meanwhile, the US’s willingness to negotiate a new trade deal with China may signify no further negative developments on international trade tariffs.
Amidst Bitcoin’s recent bullish stint, analysts continue to roll out bullish predictions with lofty price targets as high as $150,000.
Featured image from Pexels, chart from Tradingview
