This week, the Bitcoin price experienced a significant increase, surpassing the critical resistance level of $104,000 for the first time since February
Bitcoin experienced a nearly 40% increase from its April low, which in turn sparked a more extensive altcoin rally. The total crypto market cap has increased to $3.25 trillion, while Bitcoin’s market cap has surpassed $2 trillion.
The Bitcoin rally is being driven by a variety of factors. Initially, there is an increasing sense of optimism that trade tensions between the United States and other major economies may subside. The United States has already reached an agreement with the United Kingdom, and its senior officials are scheduled to meet with their Chinese counterparts this weekend.
The termination of the current tariff regime would serve as a beneficial catalyst for both equities and cryptocurrencies, as it would alleviate recessionary concerns, decrease inflationary pressure, and increase the probability of Federal Reserve rate cuts.
Furthermore, Bitcoin specialists have enhanced their projections. Standard Chartered stated in a recent note that its previous $120,000 target was excessively conservative. Ki Young Ju, the founder of CryptoQuant, acknowledged that his prediction regarding the conclusion of the bull market was inaccurate. He predicts that BTC will experience greater potential due to the increasing demand from institutions.
In the interim, spot Bitcoin ETFs have garnered more than $40 billion in inflows since January 2024, with over $1.7 billion added this month alone. Semler Scientific, Strategy, and MetaPlanet have maintained their accumulation of BTC through these exchange-traded funds (ETFs).
The price of bitcoin may continue to increase as investors become increasingly ravenous. The crypto dread and greed index has surged to the 70-point greed zone. Bitcoin and other altcoins have historically performed well when investors are especially ravenous.
Technical analysis of the Bitcoin price
The weekly chart indicates that BTC experienced a low point of $79,510 in April and has since experienced five consecutive weeks of growth. This indicator indicates that bulls continue to dominate the market, as it remains above the 100-week Weighted Moving Average.
Bitcoin appears to be on the brink of retesting its all-time high of $109,400. Momentum favors bears, as both the Relative Strength Index (RSI) and the MACD are trending upward.
A breakout above that level would affirm bullish continuation and have the potential to propel BTC toward the next psychological milestone at $110,000.
