Bitcoin Price Warning: Drop Below $95K Could Spark Sharp Correction

Bitcoin Price Warning: Key Levels, Fed Rate Hike, and a June Bull Run

Bitcoin Price Warning – Bitcoin’s ability to hold above the critical $95,000 level may determine whether it reclaims its all-time high of $109,000 or faces a deeper correction, according to multiple crypto analysts.

In a May 6 market update, Bitfinex analysts described $95,000 as a pivotal support level, acting as the lower boundary of a three-month trading range between November 2024 and February 2025. Holding above this level would signal a “structural shift” toward bullish territory, potentially paving the way for a retest of Bitcoin’s January 20 all-time high — just hours before President Donald Trump’s inauguration.

At the time of writing, Bitcoin (BTC) is trading at $96,730, up 3.03% in the past 24 hours, according to CoinMarketCap. However, if BTC fails to maintain this support, analysts warn the level could flip to resistance, leading to a short-term rejection and further price correction.

Fed Rate Decision Looms as Volatility Catalyst

The upcoming Federal Reserve interest rate decision on May 7 may play a decisive role in Bitcoin’s next move. Historically, Fed announcements trigger increased market volatility. While futures markets see low probability of a rate cut, uncertainty could influence price swings in the days ahead.

Eyes on June for New Highs

Several analysts — including Real Vision’s Jamie Coutts and Swan Bitcoin CEO Cory Klippsten — have forecast that Bitcoin could reach new highs by June, with best-case projections around $123,000. Crypto analyst Thomas Fahrer also highlighted that $400 million in BTC shorts could be liquidated if the price hits $98,000, amplifying upward pressure.

Meanwhile, market sentiment continues to improve. The Crypto Fear & Greed Index rose to 67, firmly in “Greed” territory, as Bitcoin inches closer to the psychological $100,000 level.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.