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Opinion: Bitcoin Tested Annual Resistance on the Way Toward $95,000
The digital asset market has entered a phase of fighting to hold critical technical levels. In a recent report, analysts at Bitcoin Magazine noted that the leading cryptocurrency has tested its 200-day moving average twice over the past few days.
According to the analysts, the current price action appears to be an attempt by Bitcoin ($BTC) to firmly establish itself above the $80,000 level.
Technical Barriers and New Targets
Digital gold continues its gradual recovery from first-quarter lows, gaining around 3% over the past week. However, the pace of growth has slowed due to strong resistance.
“Price has approached the 200-day moving average, which is currently located at $82,600. The last time the asset touched this level, Bitcoin was trading above $100,000,” the report stated.
According to the analysts, if buyers manage to break through this resistance, the next major target will be the annual moving average around $95,000.
Bitcoin tests its 200-day moving average while targeting a possible move toward $95,000.
Spot Market Demand
Last month became Bitcoin’s strongest monthly performance over the past year, with gains approaching 12%. This helped increase the total cryptocurrency market capitalization by approximately $198 billion.
According to a Bitfinex report, the breakout above $80,000 is structural in nature because it has been driven primarily by spot market demand.
Analysts also pointed to a sharp increase in the Spot CVD indicator after May 8.
“Buyers are willing to absorb available supply at current prices without waiting for pullbacks. The main drivers are ETF inflows and open-market accumulation, while the impact of purchases linked to entities such as Strategy is gradually weakening,” the analysts explained.
Long-Term Holders Are Removing Supply From the Market
One of the most important trends has been the behavior of long-term investors. This group is currently absorbing Bitcoin supply at the fastest pace since the 2020 pandemic-driven market cycle.
According to Bitfinex, the group of “conviction buyers” now holds nearly 4 million $BTC.
Such activity significantly reduces the amount of Bitcoin available for trading on exchanges. When long-term holders aggressively absorb supply, it creates scarcity that, if current demand remains strong, could push prices toward the $95,000 level.
Macroeconomic Background
Risk assets are also receiving support from fresh U.S. labor market data.
The April employment report showed an increase of 115,000 nonfarm payroll jobs, exceeding expectations of 55,000.
Meanwhile, the unemployment rate stabilized at 4.3%, while average hourly wages rose 3.6% year-over-year.
Initial jobless claims came in at 200,000, marking the lowest reading of the current cycle.
According to analysts, the stability of the U.S. economy is reducing investor concerns and creating a favorable environment for continued growth in the cryptocurrency market.
See also: "Michael Saylor Reveals When They Will Start Selling Bitcoin"
