As of last Wednesday, Bitcoin has reclaimed the $100,000 barrier, a price point it hadn’t surpassed since the first week of February. That spike on Thursday proved to be the beginning of an impressive recovery from several weeks of losses that had been spurred by economic concerns. Its sudden rebound is being credited to re-invigorated investor confidence after the passage of the Trans-Pacific Partnership.
Bitcoin’s price took a major plunge from February to April. The drop was mostly blamed on fears related to tariffs and their possible destabilizing impact on the overall economy. This era of confusion cast a long shadow over the broader crypto landscape, sending Bitcoin crashing to a 54% loss.
The market sentiment shifted dramatically after President Donald Trump announced that the U.S. and the U.K. had reached a trade agreement. This announcement sent investors in a frenzy, triggering an immediate bull run across both the stock markets and the cryptocurrency sector. Bitcoin was arguably the leader of this remarkable resurgence. The trade deal proved sufficient to add a fevered optimism in global markets, spurring risk-averse investors to return to previously shelved investments in riskier assets.
Technical Indicators Point to Further Gains
Before Thursday’s breakout, Bitcoin was stuck in a tight consolidation range, showing signs of a market in indecision. The bullish break above the $100K level indicates a possible continuation of the bullish trend. This breakout has captured the imagination of traders and analysts across the board, as they now eagerly await Bitcoin’s next moves.
Bitcoin’s strength last month is highlighted by its triumphant return above its 200-day moving average (MA). This important technical indicator is a bull signal of sorts. This break above the 200-day MA is another confirmation of the long-awaited recovery taking hold. That fosters confidence in the belief that Bitcoin has much potential upside ahead. The 200-day MA is the most common metric used by traders to determine the long-term trend of an asset.
Additionally, Bitcoin’s RSI reinforces the bullish price momentum, with a reading above the 70 mark indicating an overbought condition. This is a sign of strong buying pressure and it is bullish for the cryptocurrency, implying that the price may keep climbing in the short term. The RSI shows it is overbought territory. As a result, this might indicate the beginning of a profit-taking phase in the short term, opening up market participants to a pull-back in the coming days.
Key Levels to Watch
As Bitcoin continues to dominate the headlines, analysts have pointed to major levels to watch over the next few days. The initial overhead resistance zone is between $107,000. This new level corresponds with the high watermark peaks we observed back in December and January. A break above this level would see a likely retest of Bitcoin’s all-time high.
Bitcoin is booming, currently trading almost 40% above its low from a month ago. It’s gone up 10% just since the beginning of the year! This remarkable rally highlights the strength of the cryptocurrency and its potential to bounce back from deep corrections. Those year-to-date increases only bolster Bitcoin’s established stature as the king of digital assets.
If BTC is unable to defend the crucial $100,000 barrier, it may trigger a deep correction in its price. This bearish drop could bring Bitcoin as low as $92,000. This price level is exhibiting strong support from the upward-sloping 200-day moving average located nearby. In addition, it fits with a pattern line connecting all of the above trading since late November of last year. This combination of support should help insulate them from any deeper downturns.
Market Outlook
Bitcoin was trading at $102,700 late Thursday evening, marking a significant rally from an intraday low of about $96,000. This intraday recovery is a testament to the solid bullish buying conviction that is still present in this market. The healthy breakout out of the recent consolidation period. This movement leads the way for a possible retest of Bitcoin’s all-time high of $109,000 set during late January.
Bitcoin’s astrological analysis indicates a possible upside target of approximately $120,000 if the current continuation move materializes. This very bullish prediction is based purely on the technical movements of Bitcoin’s price chart. More than anything else, it shows just how optimistic the market is right now. Yet investors must still be careful and take stock of broader market conditions.
