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Bitcoin is struggling to hold the $94K support level as market sentiment weakens ahead of the upcoming Fed rate decision. Is $92K the next stop?
As the crypto market fails to sustain a valuation above $3 trillion, Bitcoin has experienced a pullback. Over the weekend, its price dropped from $96,926 to $94,162, a 3% decline.
Currently, Bitcoin is holding above the $94,000 mark, trading at $94,335, following a rebound from a 24-hour low of $93,550.
This lower price rejection reflects bullish efforts to defend recently reclaimed levels. However, sell signals against Bitcoin are mounting. Could this lead to a deeper pullback toward the $90,000 level?
Bitcoin Price Analysis Signals Potential Drop to $90K
On the daily chart, Bitcoin’s price trend shows a bullish recovery in April, reaching the 78.60% Fibonacci level near $95,000. During this rally, Bitcoin hit a 7-day high of $97,938.
However, due to strong price rejection at higher levels, Bitcoin has fallen back below the 78.60% Fibonacci level. This indicates a failure to maintain bullish momentum and a sudden shift in market sentiment.
Despite this, the recent uptrend triggered a positive crossover in the 50- and 100-day EMA lines. Still, the ongoing pullback now signals a possible negative crossover in the MACD and signal lines.
Such a crossover would confirm a sell signal, suggesting a deeper correction. The next key support level lies at the 50-day EMA, near $89,500.
Conversely, if the recovery continues, the $106,000 supply zone remains a potential upside target.
Analysts Warn of Potential BTC Price Drop to $92k
As Bitcoin hovers near $94,000, some analysts are anticipating a deeper correction. Crypto analyst Ali Martinez points to a possible drop to $92,000, citing a rising channel pattern visible on the 4-hour chart. A crucial support level remains near the $94,000 mark.
#Bitcoin $BTC is testing support at $95,000. If this level breaks, a pullback toward $92,000 could be next. pic.twitter.com/8nVZSkDWj1
— Ali (@ali_charts) May 4, 2025
Similarly, analyst Michael van de Poppe also predicts a steeper correction. He warns of a potential drop in Bitcoin’s price ahead of the FOMC meeting.
The upcoming FOMC meeting, scheduled for May 7, will address interest rate decisions. With volatility rising ahead of the event, Bitcoin may retest the entry zone between $91,500 and $92,500.
It would be great if this holds here already on $BTC.
If a standard pre-FOMC correction takes place, then the go-to zone for entries is between $91.5-92.5K. pic.twitter.com/K5hDVHonIv
— Michaël van de Poppe (@CryptoMichNL) May 4, 2025
Bullish Traders Brace Against Correction Threat
Despite growing concerns over a steep correction, derivative traders remain bullish. Data from CoinGlass shows a spike in the BTC long-to-short ratio over the past four hours.
BTC LongShort Ratio Chart
Long positions now account for 52.93% of open interest, pushing the long-to-short ratio to 1.12. With bulls currently dominating the short-term market, Bitcoin may be able to withstand upcoming volatility and extend its recovery.
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