Bitcoin prices have fallen more than 3% over the past week as the wider crypto market is affected by the loss of general price corrections affected by macroeconomic pressure. It is worth noting that the Prime Minister’s cryptocurrency is now trading at over $104,000, an estimated 7% drop from its new all-time high at $111,970. In what may be just a corrective action, market analyst Daan Crypto highlighted a support zone with great potential to prevent any further price drops.
$97,000-$99,000 emerges as key BTC price levels
In a short X post on May 31, Daan Crypto is cautious about Bitcoin in the ongoing price correction. The analyst noted that if the answer continues into June, Bitcoin could drop to around $97,000 to around $99,000, where reliable market resistance may be found.
Daan Crypto’s choice of this price range is the next major support level for Bitcoin, derived from the convergence of technical indicators. As shown in the figure below, the $97,000-$99,000 price zone represents the mid-range range of Bitcoin trading channels between $90,845 and $108,386, and hosts a 200-day moving average and 0.382 FibonACCI backtracking level.
The mid-range in the trading channel is usually a critical level of support or resistance, depending on where the price is relative to the price. In Bitcoin’s price correction, the current mid-range is $97,000 to $99,000, representing the next major price bottom for the Prime Minister’s cryptocurrency, which is the decisive price below this marks a bearish price trend.
Meanwhile, the Fibonacci reflux level of 0.382 represents a healthy market correction zone, meaning that prices will usually return to the zone before the initial trend is restored. In addition, the 200-day MA is a long-term indicator of the market price in the past 200 days. In a bullish trend, it can also serve as a support level for the support level, which is a normal retest level before the price rises.
Generally, all three indicators indicate that $97,000-$99,000 will serve as a reasonable technical support zone and that Bitcoin prices should fall further. However, the loss in the support zone will threaten Bitcoin’s bullish potential, with the next support level of about $94,000.
Bitcoin Price Overview
At press time, Bitcoin was trading at $104,650, reflecting a slightly 0.14% price over the past day. The Prime Minister’s cryptocurrency also reported a monthly gain of 7.21%, indicating that most new market entrants remain profitable. However, a weekly decline of 2.86%, suggesting that market demand needs to recover to stop the spread of bearish sentiment investment.
Featured images from Pexels, charts for TradingView
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