Bitcoin (BTC) Maintains Its Bullish Form from April as It Gains by Over 4%

Bitcoin maintains its bullish form from April as it gains by over 4% in the first two days of May to surge above $97,000.

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Bitcoin maintained its bullish form from April as it gains by over 4% in the first two days of May to surge above $97,000. Following this recent gain, the premier cryptocurrency is experiencing a minor retracement as investors attempt to decipher the current market phase.

However, a prominent crypto analyst with the X handle IT Tech has shared some valuable insights on Bitcoin’s market structure, highlighting the key price levels that could decide the asset’s movement in the short term.

Bitcoin SuperTrend Indicator Still Bullish, Most Liquidation Zones Identified

According to IT Tech in an X post on May 2, Bitcoin appears to be catching its breath following a price rally from $93,600 to above $97,000. As market traders await to see if this will be a mere cooling period before another upswing or the start of a deeper price correction, the analyst has shared some helpful technical and on-chain insights on potential price targets.

The analyst states that the Bitcoin SuperTrend Indicator had printed a buy signal when prices hit $94,000, followed by a sell signal at $97,300. However, with market prices still above $94,000, the Bitcoin market structure and SuperTrend Indicator remain bullish.

Meanwhile, liquidation data has also hinted at potential points for price volatility. Most notably, IT Tech states there are long liquidation zones between the $95,200 – $96,000 price region and another dense cluster of orders at the $93,600 – $94,000 price region. Both regions are expected to act as strong price supports in the case of an unexpected decline.

Determing Bitcoin's Next Move

In determining Bitcoin’s next move, IT Tech says that market sentiment remains cautiously bullish as long as the $96,000 support level remains valid. This is because a decisive price fall below this level would trigger a liquidation cascade pushing prices back to $94,000.

On the other hand, another price breakout above $97,400 to allow Bitcoin to trade as high as $98,500 could open the door for further gains towards the $100,000 to $101,000 price region.

At press time, Bitcoin is trading at $96,187, reflecting a 1.64% gain in the past seven days. The asset’s trading volume is down by 21.82% in the past 24 hours and valued at $26 billion.

Bitcoin is showing signs of cooling off after a recent surge that saw it hit a 15-month high of $97,500. The cryptocurrency is currently trading at around $96,000, still up significantly from the lows of $93,600 reached earlier this week.

After a stellar run-up from the March lows of $88,000, Bitcoin faced resistance at the $97,300 level, where it triggered the SuperTrend sell signal. This brought a pause to the uptrend, allowing for a minor retracement.

Most importantly, there are no major liquidation zones until the $95,200-$96,000 support and the $93,600-$94,000 support. These levels are expected to provide strong support in the event of a sudden drop.

Bitcoin Remains in a Bullish Structure

Overall, Bitcoin remains in a bullish structure as long as it stays above the $94,000 level, where the SuperTrend indicator printed a buy signal. A break below this level could negate the SuperTrend buy signal and set the stage for a deeper decline.

However, if Bitcoin manages to close a day above $97,400, it could open the door for a move towards the $98,500-$99,000 resistance zone, and potentially even the $100,000-$101,000 price region.

This analysis provides valuable insights into the technical and on-chain factors that could influence Bitcoin’s price movements in the coming days. As the cryptocurrency market continues to evolve, traders and investors will be closely monitoring these indicators to anticipate any significant shifts in market momentum.