- Bitcoin is testing $95K support after dropping from a 70-day high of $98,200.
- Institutional demand remains strong as MicroStrategy continues large-scale BTC purchases.
- Traders await the Fed’s May 7 meeting as Bitcoin’s market correlation with stocks increases.
Bitcoin is trading near $95,000 after falling from recent highs. This level now serves as a critical support zone for traders. If buyers fail to hold this area, analysts expect a further decline toward $92,000 in the near term. Market participants are watching for developments that may shift short-term sentiment.
Bitcoin Pulls Back After Institutional-Led Rally
Bitcoin reached a 70-day high of $98,200 on May 2, driven by ETF inflows and corporate treasury accumulation. However, it dropped 0.7% on Sunday, May 4, falling below $96,000 for the first time since midweek. It currently trades near $94,777, based on CoinGecko data.
The move is viewed as a retest of previous resistance now acting as support. “What used to be a ceiling could now turn into a floor,” stated analyst David on X. On-chain activity also remains strong, with over 925,000 active addresses recorded in a single day.
MicroStrategy has continued its accumulation strategy, acquiring 15,355 BTC on April 28. This raised its total holdings to over 553,000 BTC, worth billions at current prices. According to data from SaylorTracker, the firm is up nearly 39% on its 2025 investments.
Market Caution Builds Ahead of Federal Reserve Meeting
Bitcoin’s momentum has slowed due to weak weekend trading and cautious investor sentiment. Futures volume has declined across major exchanges like Binance and CME, while Ethereum has also struggled to stay above $1,900.
According to data by CoinGecko, Bitcoin’s correlation to traditional markets has increased. With the Federal Reserve set to meet on May 7, traders remain wary of policy shifts that could affect asset prices.
The CME FedWatch Tool suggests a low chance of a rate cut this week. If Bitcoin fails to hold the $95,000 level, traders anticipate a move toward $92,000 in the short term.
