Bitcoin (BTC) Has Entered May With a Strong Note, Continuing the Upward Momentum

May 2, 2024

Crypto traders are now focused on the $100,000 mark for Bitcoin (BTC), but one influential analyst is keeping a closer eye on a key support level that could decide whether the trend remains upward or falters.

As traders digest the latest developments in the cryptocurrency market, one analyst's insights into a crucial support level for Bitcoin are providing valuable context for navigating the coin’s price movements.

111-Day Moving Average Is Key Support At $91,200

Analyst Burak Kesmeci took to X (formerly Twitter) to share an in-depth look at Bitcoin's chart, focusing on the 111-day moving average as an essential indicator.

According to Kesmeci, this level, currently around $91,200, is the most important price floor for Bitcoin in the coming weeks.

This moving average is a component of the Pi Cycle Top & Bottom indicator, which uses the 111-day and 350-day moving averages to identify peaks in Bitcoin's market cycles.

Typically, when the short-term average crosses above the longer one, it signals the end of bull runs, but that crossover has not yet occurred.

The two moving averages are now diverging, which Implies that Bitcoin still has room to grow.

According to Kesmeci, for Bitcoin to sustain this positive trend, it must remain above the $91,200 level for multiple weekly closes. This technical detail could shape the coin's near-term behavior more than the hype surrounding the $100,000 target.

At the same time, another analyst, known as Checkmate, is highlighting a potential barrier.

Using a supply distribution heatmap, he noted that the $93,000 to $100,000 range is a dense zone where a lot of prior investor cost bases are clustered.

These price bands suggest strong resistance, as many holders might be waiting to sell once prices return to their original buying levels.

This creates a psychological factor. With several investors sitting on previous losses, the incentive to exit at break-even points could trigger a wave of selling in this price range, slowing momentum just as excitement peaks.

Despite the crowding in the $93,000-$100,000 range, Checkmate observed that supply drops off sharply beyond $100,000.

This Implies that far fewer coins were bought at higher prices, suggesting lighter resistance. He described the path above $100,000 as "blue skies," which could allow for a swift rally.

However, failing to break through this high-density area could trap Bitcoin in a new phase of sideways movement. Consolidation, while not bearish, would delay the run toward new highs that many are anticipating.

As of writing, BTC is trading at $95,888, showing a slight 0.67% decrease over the past 24 hours.