Bitcoin's recent price action has seen it struggle to break above the crucial $98,000 resistance level, with profit-taking and selling pressure causing choppy movements in the market. Despite forming daily candle highs within the $93,000 to $97,900 range since April 22, Bitcoin has failed to close above $97,440.

According to CryptoVizArt, a senior researcher at Glassnode, the profit-taking volume in the $93,000-96,000 range has exceeded statistical levels. This indicates that investors are selling Bitcoin at a profit, potentially signaling a market top and increased sell-side pressure. The Realized Profit/Loss ratio shows that for every dollar realized in loss, more than $9 was realized in profit, highlighting the selling activity in the market.

As BTC selling has intensified near the $95,000 level, analysts warn that Bitcoin is at a critical juncture. Checkmate, a crypto analyst, emphasized the importance of Bitcoin clearing this price zone to avoid a major correction. The current supply in profit for Bitcoin stands at 86%, a level that historically indicates a bullish phase but also suggests heightened profit-taking risks.

Bitcoin's price levels to watch include flipping the $98,000 resistance into support to target highs above $100,000. However, the immediate goal is for the BTC/USD pair to close above $95,000 on the daily chart, which it dropped below on May 4 due to profit-taking following the rally to $97,000. Failure to hold above $95,000 could see Bitcoin retesting lower support levels, with $90,000 being the immediate target.

Positive catalysts for the bulls could come from continued demand from spot Bitcoin ETFs, which saw $1.8 billion in net inflows last week. Additionally, market sentiment could be influenced by the upcoming Fed interest rate decision meeting.

On the flip side, bears will aim to maintain the $98,000 resistance to push prices lower, potentially towards $90,000 and even down to the $85,000 to $75,000 range. Breaking below $75,000 would erase gains made after a recent tariff pause.

In conclusion, Bitcoin's price outlook remains uncertain, with conflicting signals from profit-taking levels and supply dynamics. Traders and investors are advised to conduct their own research and exercise caution in their trading decisions as the market navigates through these key price levels.

Source: https://cointelegraph.com/news/watch-these-bitcoin-price-levels-btc-meets-decision-point?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound