Bitcoin Price started a solid note the month, crossing the significant level of resistance at $ 96,000 for the first time since February.
Bitcoin (BTC) jumped above $ 97,000, up almost 30% compared to its lowest level in April. Its gathering occurred while investors have adopted a feeling of risk, the cryptocurrency index and greed passing to 55.
American actions also continued their momentum upwards, with the Dow Jones and Nasdaq 100 indices jumping by more than 350 points. You will find below the three main reasons why Bitcoin could be on the way to $ 100,000, and perhaps a summit of all time in May.
1. The Cross model of Bitcoin Price’s death failed in April
One of the main reasons for optimism is that Bitcoin avoided forming a death model of death last month. A death cross occurs when the 50 -day mobile average crosses the 200 -day mobile average – generally a lowering signal.
In April, the propagation between these two averages was considerably narrowed but ultimately did not go through. This reflects what happened in September 2023, when an imminent death cross preceded a rally of 83% in BTC. A similar configuration could point out another bullish wave.
Bitcoin has other bullish technical catalysts that can push it over $ 100,000 and even its top of all time. He formed a two -low pattern at $ 76,560 and has now exceeded the neckline at $ 88,830. He also moved above the upper side of the small raised flag motif illustrated in yellow. Therefore, all these models indicate other gains in May.
2. Bitcoin institutional demand increases
Another potential catalyst for Bitcoin is the growing number of institutions that actively buy the room. A notable example is that the Bitcoin ETF recorded net inputs of $ 2.9 billion in April, bringing cumulative entries to more than $ 39 billion.
In addition, more companies build and increase their Bitcoin vouchers. Cantor Fitzgerald, Tether and Softbank joined forces to create twenty one, a company whose sole purpose is to buy Bitcoin. Other companies, such as Trump Media and Gamesop, have also announced its intention to acquire Bitcoin.
More companies are likely to continue to buy Bitcoin because it is gradually evolving in an asset with a package. He has outraged actions and other risk assets since Trump delivered his price speech on the Liberation Day.
3. Federal reserve and pivot of Donald Trump
Bitcoin should also receive a boost from Donald Trump and the Federal Reserve, especially after this week’s economic data. A report published Tuesday has shown that consumer confidence has dropped in April.
Another report revealed that the private sector only created 61,000 jobs in April, well below the median estimate of 121,000. The US economy has also contracted for the first time since 2022, which raises concerns about a possible recession.
These figures suggest that Trump and the Fed can rotate this month. Trump could start negotiating trade agreements with countries, including China. Meanwhile, the Fed can point out that it is ready to intervene by reducing interest rates.
These two actions will put an end to the highest risks against the market this year and push risky assets such as higher Bitcoin.
