Bitcoin, after a long period of trading within a tight consolidation range, has just now broken out above the $100k mark. This recent spike, which happened on Thursday, is the first time Bitcoin has broken above this level since early February. The cryptocurrency is in position for a potentially huge one. In fact, it could be on the verge of recently testing its all-time high—$109,000 from late January.
It jumped late Thursday evening, reaching a high of $102,700, marking a considerable recovery from its intraday low of around $96,000. It’s the depth of this movement that is truly historic. Bitcoin soared almost 40% off last month’s low and is currently up 10% since the beginning of this year. Analysts are warning that if bulls don’t defend $100,000, then a retracement back down to the $92,000 zone is on the cards.
Technical Indicators Point to Bullish Momentum
Bitcoin’s recent performance is indeed on solid ground, as key technical indicators such as moving averages. Last month, Bitcoin first lifted above the 200-day moving average (MA), marking a major upside shift in momentum. The relative strength index (RSI) adds credence to this bullish trend, climbing above the 70 overbought threshold.
The $92,000 area is a very important support level, reinforced by the upward-sloping 200-day MA and a long-term, rising trendline. If Bitcoin does pull back—likely a strong possibility—this is what should serve as really strong support.
The RSI signals overbought conditions, pointing to a potential pullback from short-term profit-taking. This may add volatility in the short term as speculators seek to lock in profits.
Key Resistance Levels and Potential Targets
Looking forward, Bitcoin is up against some important resistances. Keep an eye on that first overhead band at ~ $107,000. This level is sure to get a lot of eyes around it, as it is close to the important peaks in December and January, forming a double top on Bitcoin’s chart. A logical upside target for Bitcoin, if it were to eventually break out, would be about $120k.
We saw a similar downward spike in BTC’s price from mid-February to early April. This drop was driven by concerns over tariffs and their expected negative economic effects. This recent upswing could be seen as a sign that confidence is returning to the cryptocurrency market.
Trading Volume Trends
People are buying and holding Bitcoin as it moves ever upward. Yet trading volumes on Coinbase, the largest crypto exchange in the United States, are down since the rally began in early April. This divergence between price and volume should raise eyebrows.
Declining volume during a price advance can be a warning sign that the underlying trend is losing its strength and may be vulnerable. Traders and investors will be watching intently to see if volume comes in to confirm the current rallying of Bitcoin is sustainable.
