Bitcoin Holds $94K Support but This Price Level Now Controls Upside

Bitcoin price movement now depends on whether the $94K level holds through the next daily close.

A bullish FOMC reaction could lead Bitcoin toward $135K while a drop risks hitting the $90K mark.

Traders track Elliott Wave patterns and Fib levels as BTC navigates a key technical breakout point.

Bitcoin ($BTC) may be on the edge of a pivotal move following the FOMC reaction. The current chart indicates a potential extended fifth wave, according to Charting Guy. Market sentiment will shift based on how BTC reacts to key Fibonacci retracement levels. Traders are watching closely for confirmation as BTC flirts with critical support and resistance zones

Source: X A Make-or-Break Moment for Bitcoin

As of May 6, 2025, Bitcoin trades at $96,878.99, up 1.96% on the 4-hour chart. This rise aligns with a possible extended fifth Elliott Wave. The market watcher known as Charting Guy shared this technical outlook, referencing Fibonacci levels to determine possible price direction. An extended fifth wave typically signals the final leg in a bullish sequence.

Charting Guy notes that a positive reaction to the FOMC announcement could fuel another strong push upward. If bullish momentum holds, BTC could retest highs above $120,000 or even extend toward $135,000 based on Fibonacci extension levels. The chart identifies the 1.618 Fib at $138,692.78 as a target in such a scenario.

However, downside risk remains. A bearish reaction could push prices toward $90,000 or even $86,000. These levels align with historical support and key retracement zones. A strong daily close below the 0.618 Fib level at $94,400 could suggest a deeper correction is underway.

Key Fibonacci Levels in Play

Fibonacci retracement and extension levels are central to the current analysis. The 0.618 retracement level at $94,400 acts as a key pivot point for bulls and bears. Charting Guy highlights that BTC has yet to close a daily candle under this line. Until that occurs, the bullish outlook remains valid.

Multiple Fibonacci levels are visible in the shared chart. These include the 0.786 ($100,743.60), 0.5 ($91,573.99), and 0.382 ($86,421.49) retracements. If prices break below $94.4k, the 0.5 level could offer temporary support. Failing that, $86k becomes the next target zone.

The chart also shows higher Fibonacci extension points. If bulls push forward, BTC may encounter resistance at 1.272 ($121,076.24), 1.414 ($128,227.59), and 1.618 ($138,692.78). These values offer a roadmap for potential future price action. Such precise targets help traders anticipate potential breakouts or pullbacks.

Which Way Will Bitcoin Go?

The crypto community remains divided as technicals and fundamentals intersect. The FOMC's monetary stance could provide the needed catalyst for BTC's next leg. Until then, traders must monitor candle closures and volume signals at key support levels.

The price structure shows a clean wave pattern, aligning with Elliott Wave Theory. Notably, the current rise has followed a traditional 5-wave count with corrective ABC patterns interspersed. Analysts suggest that BTC could be wrapping up its fifth wave, signaling a potential top or a setup for a further breakout.

In a telling reply, a commenter notes the wave count might represent a standard fifth wave, not an extended one. This raises a key question: is the market preparing for a reversal or merely pausing before another climb?

With $BTC trading near pivotal technical zones, and the 0.618 Fib at $94,400 holding as support, the market waits. The decision may hinge on a single candle close, potentially reshaping the trajectory for the rest of Q2 2025.