Analyst Says Bitcoin’s Most Crucial Support Level Is At $91,200 — What’s Next?
The price of Bitcoin has started the month of May with a similar bullish impetus as in the final weeks of April, making a push for the psychologically relevant $100,000 level. With the premier cryptocurrency seemingly back on the bullish track, a prominent crypto analyst has emerged with a warning of sorts for BTC investors extremely optimistic about the coin’s future trajectory.
BTC Price Could Continue Upward Movement If Support Holds
In a May 2 post on the X platform, crypto platform Burak Kesmeci has put forward an interesting outlook on the current Bitcoin setup, identifying a price level that may be critical to the coin’s long-term health. The online pundit dove into BTC’s price structure and its potential future movements based on the Pi Cycle Top indicator.
The Pi Cycle Top indicator is a forecasting tool that uses two major moving averages (a short-term 111-day moving average and the 350-day moving average) to pinpoint the peaks of Bitcoin bull cycles. Historically, a crossover of the short-term MA above the long-term MA signals a potential price top in the Bitcoin market.
As it stands, these two Pi Cycle moving averages are moving in opposite directions, suggesting that the price of Bitcoin might still have some room for upward growth in this cycle. At the same time, the 111-day moving average can act as a support level, often signaling buying opportunities for investors looking to enter the market or double down.
As observed in the chart below, the price of Bitcoin tends to bounce back whenever it hits the short-term moving average.
According to Kesmeci, this 111-day moving average is hovering around the $91,200 level, which represents the most crucial support zone as the Bitcoin price approaches a close on the weekly timeframe. The on-chain analyst expects the flagship cryptocurrency to continue its current upward price run if it manages multiple weekly closes above the short-term moving average.
Bitcoin Price Overview
As of this writing, the price of BTC stands at around $96,685, reflecting a mere 0.2% increase in the past 24 hours. While the premier cryptocurrency has not replicated its previous week’s red-hot form this week, it did make a strong start to the new month.
The market leader continued its good May form by starting the weekend on a positive note, traveling as high as $97,800 on Friday, May 2. According to data from CoinGecko, the Bitcoin price is up by more than 2% in the last seven days.
Featured image from iStock, chart from TradingView
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