Indeed, as Bitcoin’s price has skyrocketed the $100,000 mark seems closer than ever before. According to one recently bullish crypto analyst, the cryptocurrency recently broke out of a four-month falling wedge pattern earlier this month, signaling renewed bullish sentiment. Recent gains are due to wider positive sentiment in risk-on assets, on expectations that the White House might modify its tariff proposals.
Technical Analysis Points to Key Levels
Bitcoin’s price recently exchanged hands at $93,500, a remarkable rebound from its $33,000 April trough. The cryptocurrency’s surge comes on the heels of a decisive closure above its 200-day moving average on Tuesday, adding strength to the bullish momentum. The $100,000 level may be particularly difficult. More technically, it runs up against a 45-degree line that connects down price action from last November through late February, potentially inciting seller’s remorse.
Any successful move above the $100,000 resistance might push Bitcoin to the next goal of $107,000. This amount closely matches the highs seen in December and January, during which time investors may want to take profits. The relative strength index (RSI) 2 as a technical indicator leans toward a bullish thesis. It bumps along just above 50 but below overbought territory, suggesting there is still upside potential.
Potential Pullbacks and Support Zones
If selling pressure does arrive, a first line of retracement is around $85,000. This is in line with the breakout point we experienced earlier this month. It further embodies bullish trading activity from late February, which might attract even more buyers. A deeper pullback could lead to a retest of support at $76,000, near a trendline connecting April's swing low with price points following Bitcoin's initial post-election surge last November.
The $76,000 range could be seen as an opportunity by investors to accumulate Bitcoin. But if support at these levels aren’t maintained, it’ll be a sign that market sentiment is starting to change. Despite today’s rally, Bitcoin is still far from its all-time high of $109,000, set in January just 10 months ago.
Market Sentiment and Future Outlook
Bitcoin has rallied around 25% from its 2024 bottom established just after mid-day on 4/03. This past increase is partly a function of increases in other risk-on assets. This increase is propelled largely by speculation over what might happen with the White House’s tariff policies. If Bitcoin can overcome the psychological hurdle of the $100,000 barrier, it will likely spur more investment and create a wave of positive price momentum.
