Bitcoin (BTC) Hovers Near $96,730 as Fed Holds Rates Steady

Bitcoin's (BTC) ability to maintain support above $95,000 could determine whether the market heads toward a fresh all-time high

Bitcoin (BTC) price is currently consolidating above a key support zone that could determine whether the market continues toward a new all-time high or faces a near-term correction, according to analysts at Bitfinex.

As of Monday, May 7, Bitcoin is trading at $96,730. According to Bitfinex, the critical pivot point for the next major move is the $95,000 support zone.

If this level holds, and macroeconomic trends remain in mind, then this could confirm a “structural shift” back into bullish territory and open the door for Bitcoin to retest its $109,000 all-time high, which was set on January 20, 2025.

This level is also the upper bound of a three-month trading range that was established between November 2024 and February 2025.

If the support at $95,000 flips, then it could trigger a breakout toward $98,000 and beyond, potentially trapping short sellers and leading to a short squeeze scenario. Crypto analyst Thomas Fahrer pointed out that $400 million in short positions could be liquidated if BTC reaches $98,000.

But if Bitcoin fails to defend the $95,000 level, then it may spark a short-term rejection and another round of corrective price action.

“The next few days will be critical as BTC either breaks higher or revisits lower support levels, likely contingent upon macroeconomic cues and trading sentiment,” Bitfinex noted in its latest market report.

Bitcoin price movements over the past 7 days.

According to Real Vision analyst Jamie Coutts, the best-case scenario for Bitcoin price this year will see it hit $123,000 by June.

In March, Coutts set a price target of $150,000 for Bitcoin by the end of the year in a bull-bear scenario. However, in a recent interview with Real Vision, he adjusted the prediction, setting a best-case scenario of $123,000 by June.

This adjustment follows recent price action and macroeconomic trends, which have introduced possibilities for a steeper correction or a more gradual recovery.

According to the analysis, if Bitcoin experiences steeper declines from its 2025 high, the potential for reaching $123,000 in June will decrease. Conversely, if the price trends upward more smoothly, it could achieve this level.

The updated price target also takes into account the U.S. Federal Reserve's actions and the upcoming halving event in March 2024, both of which are expected to exert significant influence on Bitcoin price movements.

If the Fed pivots earlier than anticipated and begins cutting interest rates in the second half of 2024, while simultaneously reducing inflation, it could create an environment conducive to a stronger and earlier recovery in the cryptocurrency market.

Moreover, the halving event is likely to be a pivotal moment, potentially leading to a surge in price as BTC approaches the new all-time high set earlier this year.

If the price increases smoothly from the current levels to $123,000, it could also trigger a massive liquidation of short positions, potentially leading to a price explosion.

If the lower time frames are considered, the price is currently facing resistance at the 200-EMA on the 4-hour chart, which might limit further gains in the short term.