BTC/USD Analysis: Price Edges Close to the $100k Mark
Yesterday, the price of Bitcoin climbed above $99,000 a level not seen since late February this year.
However, the bullish momentum proved insufficient to breach the psychological $100,000 barrier, and this morning the leading cryptocurrency is holding above $98,000. Since the start of the month, the BTC price has risen by nearly 5%.
Why is Bitcoin rising?
Two main drivers may have contributed to yesterdays price surge:
Expectations of a forthcoming trade agreement between the US and (reportedly) the UK, already announced by Donald Trump. Well-known cryptocurrency analyst Anthony Pompliano stated that the upcoming deal means the odds of reaching new all-time highs in 2025 are increasing.
The Federal Reserves decision to maintain interest rates at their current level for another month, despite growing pressure from US President Donald Trump, who just weeks ago threatened to dismiss Fed Chair Jerome Powell for cutting rates too late. Market participants may have interpreted this as a bullish signal for cryptocurrencies.
BTC/USD Technical Analysis
In our previous analysis (2 May), we:
extended the long-term upward channel (highlighted in blue);
suggested that the uptrend in the Bitcoin chart had resumed following a correction along line R a view supported by the current bullish trajectory (indicated with purple lines).
Price behaviour around the $95,000 level is particularly noteworthy. This level previously acted as both support and resistance (as shown with arrows), and in late April and early May, the Bitcoin price appeared to stabilise near it (marked), which may be interpreted as a temporary equilibrium between supply and demand.
Yesterdays rise may indicate that the balance has shifted in favour of the buyers. How resilient the current positive sentiment proves to be could be revealed by how BTC/USD behaves in the face of a potential attempt to breach the psychological $100,000 level.
Read more: https://fxopen.com/blog/en/oa-btc-usd-analysis-price-edges-close-to-the-100k-mark/
Text source: Forex Trading Blog
