Bitcoin is hovering around the $97,000 mark, facing a significant resistance level that could determine its next major move. As of May 2, 2025, the cryptocurrency has experienced a 24% increase since its April low of approximately $76,000, driven by renewed institutional interest and favorable market conditions.
$97K: A Critical Resistance Point
On-chain data from Glassnode reveals that approximately 392,000 BTC were acquired at the $97,000 level, creating a substantial supply barrier. This concentration suggests that many investors may be looking to break even, potentially leading to increased selling pressure at this price point.
Additionally, a significant support zone exists between $95,193 and $97,437, where around 649,600 BTC were purchased, amounting to approximately $61.6 billion. This support could help prevent sharp declines if the price faces downward pressure.
Institutional Investment Fuels Optimism
Institutional investors continue to show strong interest in Bitcoin. Standard Chartered forecasts that Bitcoin could reach $120,000 in Q2 2025, driven by strategic shifts in global capital flows away from U.S. assets. The bank also maintains a year-end target of $200,000 for Bitcoin.
Peter Chung, head of research at Presto, echoes this sentiment, predicting that Bitcoin could hit $210,000 by the end of 2025, citing rising institutional adoption and global liquidity as key drivers.
Technical Indicators Suggest Potential Breakout
Technical analysis indicates that Bitcoin is forming an ascending triangle pattern, typically a bullish signal suggesting a potential breakout. The 4-hour 50 EMA has provided strong support, with traders entering positions around $93,000 and taking profits at $97,000.
However, some analysts caution that the current pattern resembles an ascending wedge, which can be a bearish indicator, suggesting that a decisive movement is likely soon.
Market Sentiment: Neutral but Watchful
The Crypto Fear and Greed Index has decreased to 53, indicating a neutral market sentiment. This shift suggests that investors are adopting a more cautious approach, awaiting clearer signals before making significant moves.
Short Squeeze Potential
A build-up of short positions between $97,000 and $100,000 has been observed, raising the possibility of a short squeeze. If Bitcoin breaks above these levels, short sellers may be forced to cover their positions, potentially driving the price higher.
Bitcoin’s current position at the $97,000 resistance level is a critical juncture. Institutional interest and technical indicators suggest potential for further gains, but significant resistance and market caution remain. Investors will be closely watching for a decisive move that could set the tone for the coming months.
