- Bitcoin broke above the $87,000 resistance, a level tied to the 50-day SMA, regaining bullish momentum for further gains.
- Market participants show increased activity near $95,000 to $98,000, creating resistance as many aim to break even.
- Analysts suggest a clear path to new highs exists if Bitcoin passes current resistance and enters low-volume territory beyond $100,000.
Bitcoin continued its upward movement this week after surpassing the $87,000 resistance, a key technical level identified by market analysts. This level had acted as a major cap since early February, aligning closely with the daily 50-day simple moving average. Following the breakout, Bitcoin advanced into the $92,000 to $98,000 range, showing sustained strength in its price recovery.
The Bitcoin market reached $97,483 on May 1, showing its highest levels since the late February period before starting a brief correction. The market continued rising on May 2, reaching $97,948, but faced selling pressure at that level. The market recorded a minor price decrease to reach $95,684, where it lost 0.54% from its initial value during the last 24 hours on Saturday.
Economic analyst Michael van de Poppe highlighted that Bitcoin faced its major challenge at the $87K marker. The successful price break triggered an attitude change, which allowed Bitcoin to return above the $92,000 mark in bullish territory. He pointed out that price drops from the current values might enable asset acquisition for traders aiming for a new all-time high.
Resistance Builds Between $95K and $98K Due to Holder Activity
According to blockchain data platform Glassnode, a large number of coins are currently held at a loss within the $95,000 to $98,000 range. This means many investors may choose to sell as the price enters this zone, creating additional resistance. This resistance is further supported by signs of increased distribution among long-term holders.
If the market absorbs the selling pressure within the $95,000 to $98,000 bracket, analysts believe Bitcoin could move into a zone with minimal resistance. Historical data shows fewer coins were acquired above the $100,000 range, which may ease upward movement once past this current barrier.
Veteran trader Peter Brandt added that if Bitcoin manages to reclaim its previous parabolic trend, prices could rise into the $125,000 to $150,000 range by late summer. He outlined that reclaiming structural trends could reinforce bullish patterns that lead to price discovery zones.
