Bitcoin’s price has experienced a 2.33% rise, surpassing $96,500, ahead of a significant meeting by the U.S. Federal Reserve and amid positive signals from the U.S.-China trade talks. Investors are optimistic about Bitcoin 
$109,356 breaking the $100,000 threshold to test new highs. According to Bitfinex, $95,000 represents a crucial support point as it marks the lower boundary of the previous quarterly market structure. Market participants closely monitor whether this level can be maintained.
Close Monitoring of Critical Support Levels
A report from Bitfinex emphasizes that if Bitcoin remains above $95,000, previous peak levels could be retested. The report highlights that the $95,000 level is the lower boundary defining the market between November 2024 and February 2025. Maintaining this critical support point might signal a return to an upward trend following a consolidation period.
On the other hand, failing to maintain this level could lead to broader selling pressure. If the price falls below the support line, analysts consider the possibility of Bitcoin dipping below $90,000, entering a new bearish territory. The forthcoming days will be decisive in determining whether Bitcoin can hold around the $95,000 range and subsequently aim for the $100,000 target.
Institutional Interest and Current Market Data
The Federal Reserve’s FOMC meeting on May 7 stands out as a critical factor in the cryptocurrency market. According to Money Guru Digital, the Fed continues its most significant bond-buying program since 2021, purchasing $20 billion daily over three years. This liquidity measure stimulates investor risk appetite, enhancing interest in Bitcoin.
Institutional investors have shown rapid growth in interest for spot Bitcoin ETFs. Since the beginning of the year, $214 million has been invested into ETF products, signaling confidence from major financial institutions in the market. Blockchain analysis company Santiment reports that large wallets holding between 10 and 10,000 Bitcoins have accumulated an additional 81,338 BTC over the past six weeks, increasing their positions by 0.61%. However, no similar activity has been observed among smaller investors.
Analysts indicate that institutional purchases send a message of confidence to the markets, advising caution during this period of high volatility. Investors continue to manage their positions by observing macroeconomic developments and movement in large wallets.
