Bitcoin Nears Critical Support Level: Will It Hold Above $95K?

Bitcoin's current price is close to risking the liquidation of $400 million in short positions, as it needs to stay above $95,000 to avoid a potential deeper correction. Crypto analysts emphasize that maintaining this level is crucial for Bitcoin to have a chance at retesting its all-time high of $109,000. If Bitcoin fails to hold above $95,000, it could turn resistance into support, increasing the risk of a short-term rejection and further downward movement.

In recent reports, analysts noted that Bitcoin's position above $95,000 could indicate a structural shift back into a bullish phase, potentially leading to new highs. Currently trading around $96,730, Bitcoin has gained about 3% in the past 24 hours. However, if it drops below $95,000, a more significant decline might occur. The coming days are critical in determining whether Bitcoin will break out or retest lower support levels.

Some analysts suggest that Bitcoin could reach new all-time highs by June, with projections up to $123,000. The upcoming Federal Reserve decision on interest rates on May 7 is expected to influence market volatility, though the futures market indicates a low probability of a rate cut. As Bitcoin approaches the psychological $100,000 milestone, overall market sentiment is becoming more optimistic, with the market sentiment index showing increased greed.

Bitcoin is approaching a critical support zone, and its ability to hold above $95,000 is essential for its bullish prospects. A failure to do so could lead to a deeper correction, but a successful hold might signal a structural shift toward higher prices.