Bitcoin prices surged to $94,700 yesterday, marking their highest level since March 2, 2025. The cryptocurrency has risen by approximately 27% from its April 7 low of $74,434 to the peak recorded yesterday. However, despite this recovery, Bitcoin remains down about 1% year-to-date.
Notably, the strong correlation between Bitcoin and the tech-heavy Nasdaq 100 index has reemerged during this phase, particularly with the return of positive sentiment and increased appetite for high-risk assets. Several key developments have contributed to this shift:
- U.S. President Donald Trump backed down from his decision to dismiss Federal Reserve Chair Jerome Powell, following intense pressure. He instead compelled Powell to immediately cut interest rates.
• Trump also walked back on his tariff stance against China, stating he would be very lenient in negotiations with Beijing. He noted that the imposed tariffs would be significantly reduced after a deal is reached, though not fully eliminated.
• Renewed capital inflows into Bitcoin-related exchange-traded funds (ETFs).
From a technical perspective, indicators suggest continued upward momentum for Bitcoin due to the following factors:
- A convergence between the 20-day moving average at $84,560 and the 50-day moving average at $84,383. A bullish crossover could signal an upward trend for Bitcoin.
- The Relative Strength Index (RSI) currently sits at 65, indicating bullish momentum.
- A bullish crossover between the MACD (in blue) and the Signal Line (in orange), signaling positive momentum.
The major challenge ahead for Bitcoin is to break through and sustain levels above the psychological threshold of $100,000.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
