Bitcoin’s price is once again nearing the $100,000 threshold, as the crypto market continues to be buoyed by the recent surge. The cryptocurrency surged on Wednesday, pushing the key psychological barrier back within striking distance. This explosion comes after a breakout from a four-month falling wedge pattern earlier in the month. As Bitcoin continues to make its way through this pivotal terrain, investors are intently tracking where it can expect resistance and support.
Key Resistance and Potential Pullbacks
For those reasons, once Bitcoin’s price approaches that $100,000 level on the way up, selling pressure might be very strong. This zone roughly corresponds to a horizontal line drawn through important price action from last last November's macrostand to late Feb. A bullish close above this resistance will likely push Bitcoin on the path toward $107,000.
Investors who took advantage of Bitcoin’s recent breakout should consider cashing out profits. The $107,000 might be a decent target—the summit of major peaks reached in December and January. Substantial selling activity may cause a first retracement to around $85,000. This price floor corresponds with the breakout point we experienced earlier this month. It further converges with heavy volume in late February, forming possible bullish setups.
If a larger correction happens, Bitcoin might have to revisit major support at $76,000. This area is near a trendline connecting April's swing low with a series of prices following Bitcoin's initial post-election surge in November of last year. For these investors, this might be another opportunity to load up on Bitcoin.
Technical Indicators Show Bullish Signals
The relative strength index (RSI) – an indicator of bullish momentum – currently confirms bullish momentum in Bitcoin. The reading is indeed above the 50 boom/burst threshold, but still below overbought territory indicating potential for more upside. Bitcoin managed to record a clear closing above the 200-day moving average during the course of Tuesday’s trading session, adding to the significantly bullish picture.
Now trading just over $93,500, Bitcoin is up about 25% already from its low in 2024, established in early April. Even with this surge, Bitcoin is still well below its peak of $109,000, attained last January.
Market Optimism Fuels Rally
Bitcoin’s recent rally is being driven primarily by increased optimism that the White House is likely to retreat from its artwork slideshare based tariff plans. This developing string of positive sentiment has helped to spur renewed investor confidence in the cryptocurrency market as a whole.
