Bitcoin Eyes $97,000-$99,000 As Key Support Zone Amid Price Decline – Analyst

Published by Semilore Faleti | 22 hours ago

As Bitcoin faces continued price corrections in the broader cryptocurrency market, market analysts are identifying critical support levels for the digital asset. Currently priced above $104,000, Bitcoin has experienced a decline of over 3% over the past week, following a new all-time high of approximately $111,970. Analysts suggest that significant support may emerge if the price continues to drop, particularly in the range of $97,000 to $99,000. ## Current Market Dynamics

The ongoing price correction in Bitcoin can be attributed to an array of macroeconomic factors causing volatility throughout the cryptocurrency landscape. Daan Crypto, a noted market analyst, has provided insights regarding where Bitcoin’s price may stabilize if the downward trend persists into June. In a recent post on social media platform X, he highlighted the $97,000 to $99,000 range as a critical support zone for Bitcoin.

Daan Crypto’s analysis arises from a careful examination of technical indicators. The identified range correlates with a pivotal mid-range level within Bitcoin’s trading channel, which spans from $90,845 to $108,386. This zone also aligns with the 200-day moving average (MA) and the 0.382 Fibonacci retracement level—two key indicators used in assessing market trends.

Technical Indicators Point to Potential Support

The mid-range of a trading channel often serves as a key point of support or resistance. In the case of Bitcoin, the areas surrounding $97,000-$99,000 are viewed as potential price floors; a significant drop below this threshold could suggest a shift to a bearish trend for the cryptocurrency.

200-Day Moving Average: This long-term indicator averages the market’s closing price over the last 200 days. During bullish trends, it often acts as a critical support level, where price can revisit before continuing upward.
Fibonacci Retracement: The 0.382 Fibonacci level is commonly viewed as a healthy area where price corrections may occur. Markets frequently pull back to this area before resuming their previous trends, indicating that price movements might stabilize here.

Together, these indicators suggest that if Bitcoin’s price dips further, it is likely to find support in the $97,000-$99,000 range. Analysts have warned that failure to maintain this support could lead to further declines, with the next substantial support level dropping to around $94,000. ## Bitcoin’s Current Performance

At press time, Bitcoin is trading at approximately $104,650, reflecting a slight daily gain of 0.14%. However, the digital currency has experienced an overall decline of about 2.86% over the past week. Despite this recent downturn, Bitcoin continues to report a monthly gain of approximately 7.21%, signaling that many investors remain in positive territory as additional market participants enter.

The demand for Bitcoin is a crucial factor in countering current bearish sentiment. Analysts believe a resurgence of interest and investment is necessary to prevent prices from slipping lower.

In conclusion, as Bitcoin navigates a period of volatility, key indicators point to the $97,000-$99,000 range as a crucial support zone. Traders and investors alike are advised to monitor this price level closely as the market evolves in the coming days.

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About the Author: Semilore Faleti is a crypto-journalist at Bitconist, dedicated to covering the latest developments in blockchain technology, cryptocurrency regulations, and the DeFi ecosystem. With a strong enthusiasm for the subject, he closely follows Bitcoin and its growing influence in the financial landscape.