Bitcoin’s price has entered a correction phase, dropping over 3% in the past week amid broader market pressure. The leading cryptocurrency currently trades above $104,000, marking a 7% decline from its recent all-time high of $111,970. As market participants closely monitor this retracement, renowned analyst Daan Crypto has identified a crucial support zone that could prevent further downside.
This analysis comes at a critical time, as recent market analysis suggests Bitcoin must reclaim $106,000 to prevent a deeper correction.
Technical Analysis Points to Strong Support Range
According to Daan Crypto’s analysis shared on May 31, Bitcoin could find significant support between $97,000 and $99,000 if the current retracement continues. This prediction is backed by three powerful technical indicators:
- Mid-range trading channel between $90,845 and $108,386
- 200-day moving average convergence
- 0.382 Fibonacci retracement level
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Market Implications and Risk Assessment
The confluence of technical indicators at the $97,000-$99,000 range suggests strong buying pressure could emerge at these levels. However, a break below this zone could trigger a deeper correction toward $94,000.
Current Market Status
As of press time:
- Current price: $104,650
- 24-hour change: +0.14%
- Monthly performance: +7.21%
- Weekly decline: -2.86%
Frequently Asked Questions
What happens if Bitcoin breaks below $97,000?
A break below the $97,000 support could trigger a deeper correction toward $94,000, potentially shifting market sentiment bearish.
How significant is the 200-day moving average?
The 200-day MA is a crucial long-term indicator that often acts as a strong support level during bull markets and typically signals trend direction.
What makes the $97,000-$99,000 range significant?
This range combines three technical indicators: mid-range support, 200-day MA, and the 0.382 Fibonacci level, making it a strong technical confluence zone.
