Bitcoin Must Hold $95K Support or Risk Short-Term Rejection, Say Analysts

Bitcoin’s recent price action has brought it to a crucial crossroads, with analysts warning that the leading cryptocurrency must maintain support above the $95,000 level to sustain its upward momentum. Failure to do so could result in a short-term price rejection and deeper corrective moves.

At the time of writing, Bitcoin is trading at $96,730, up 3.03% in the past 24 hours, according to CoinMarketCap data. This places the price just above the key $95,000 threshold, with bulls now eyeing a potential retest of the all-time high of $109,000 set on January 20, shortly before President Donald Trump's inauguration.

$95K: A Critical Pivot for Bullish Momentum

In a May 6 market report, crypto exchange Bitfinex identified $95,000 as the “lower boundary” of a multi-month range that has defined market structure since November 2024. Analysts there believe that holding this level would signal a “structural shift” back into bullish territory.

“The $95,000 level — currently under consolidation — is a critical pivot point,” the report noted. “Failure to hold could turn the region into resistance once more, raising the risk of a short-term rejection and another leg of corrective price action.”

The coming days are expected to be decisive, with analysts closely watching whether Bitcoin will break into a sustained rally or dip back to lower support zones.

Bitcoin is up 2% over the past seven days. Source: CoinMarketCap

$400M in Shorts at Risk if BTC Pushes Higher

A further upward move could trigger a wave of short liquidations. According to crypto analyst Thomas Fahrer, around $400 million in Bitcoin short positions could be wiped out if the price hits $98,000.

“Send it,” Fahrer said in a May 7 post on X, referencing the potential surge in liquidations.

Fed Decision Could Add Volatility

Adding to market uncertainty is the upcoming Federal Reserve interest rate decision on May 7. While futures data from the CME Group’s FedWatch Tool suggests minimal chances of a rate cut, the event is historically associated with volatility in the crypto market.

Market watchers are split on Bitcoin’s near-term potential. Back in March, analysts predicted that June could be the breakout month. Jamie Coutts, chief crypto analyst at Real Vision, forecast a best-case scenario of $123,000 by June, while Swan Bitcoin CEO Cory Klippsten estimated a 50% chance of a new all-time high before the month’s end.

However, history offers a note of caution: Bitcoin’s average performance in June since 2013 has been slightly negative at -0.35%.

Sentiment Turns Bullish as BTC Eyes $100K

Despite the uncertain macro backdrop, market sentiment is rising as Bitcoin inches closer to the psychological $100,000 barrier. The Crypto Fear & Greed Index climbed 8 points in the past 24 hours to reach 67, solidly in “Greed” territory.

With Bitcoin hovering just above the make-or-break $95,000 mark, all eyes are now on whether bulls can maintain momentum—or whether the market is headed for another correction.