Bitcoin Surges to $97K Amid US-China Trade Talks; $100K Target Looms

Bitcoin’s recent surge to $97,000 has sparked discussions on reaching $100K, driven by renewed optimism from upcoming US-China trade talks. The price shows bullish trends with a potential breakout, but institutional support appears weak, as evidenced by significant ETF outflows. MetaPlanet’s recent BTC acquisition offers a contrasting perspective of investor behaviour in the face of market volatility. Overall, Bitcoin’s derivatives market indicates growing bullishness, but caution is warranted.

Bitcoin has climbed back to the $97,000 mark recently, with investors buoyed by the impending US-China trade negotiations scheduled for this weekend in Switzerland. This renewed optimism has pushed Bitcoin’s price to roughly $96,585, reflecting an almost 3% rise in the past day. The pressing question now on everyone’s mind is whether this momentum can propel BTC to break through the significant resistance level of $100,000.

Looking at Bitcoin’s price movements over the last few hours, it appears to have found a solid baseline after bouncing off lows around $93,766—indicated by a double-bottom reversal in the chart. However, even with this recovery, Bitcoin struggles to breach the previous high points. Notably, despite reaching a peak of $97,711, it has retreated somewhat, hovering back near the mid-$96,000s.

The recent bounce has sparked a bullish crossover in the MACD (Moving Average Convergence Divergence), which suggests that the chance for Bitcoin to press against the trend line has increased. Bitcoin’s price surge has also managed to reclaim essential support, namely the 50 Exponential Moving Average (50-EMA), while challenging the 23.60% Fibonacci retracement level near $97,237. The ongoing bullish sentiment appears to be forming a broader expanding channel as well.

If Bitcoin can maintain this upward trajectory and continue to challenge the overhead trend line near the significant 38.20% Fibonacci level at $99,384, we could see a breakout rally materialise. Analysts suggest that, should this breakout happen, extended price targets could aim upwards of $102,854 and potentially $105,325. Conversely, the 50-EMA at $94,962 has emerged as an important support level that Bitcoin must hold onto.

On a somewhat contrasting note, as the crypto market shows signs of life, institutional interest seems to falter. Recent data revealed that U.S. spot Bitcoin ETFs experienced a net outflow of around $85 million on May 6. It’s worth noting that BlackRock’s ETF is the exception, seeing a positive influx of $36.73 million that day. Meanwhile, Grayscale took the lead with a staggering outflow of $89.92 million, followed by ARK and 21Shares with $16.12 million.

Interestingly, even amid ETF outflows, investment firm MetaPlanet has upped its Bitcoin acquisitions, adding 555 BTC to its vault, raising its total holdings to 5,555 BTC, with an average buy-in of $90,236 per BTC. This move is a clear signal of confidence from MetaPlanet, despite the broader challenging market.

As Bitcoin’s price spikes, the derivatives market has seen a notable increase in bullish sentiment recently, with open interest rising by about 2% to reach $63.75 billion. The Bitcoin funding rate remains positive at 0.0013%, suggesting that long positions are on the rise. Currently, long positions account for 51.43% of the total in the derivatives market, indicating a distinct bullish trend with a long-to-short ratio slightly above 1, at 1.0589.

In conclusion, Bitcoin’s recent recovery shows promising signs amid shifting market dynamics and institutional sentiments. However, market watchers will need to remain vigilant as pressures on the price point loom ahead.

Disclaimer: The information contained herein is for informational purposes only and should not be interpreted as financial advice. The author’s opinions do not necessarily reflect those of The Crypto Basic. It’s essential that readers conduct their own thorough research before making investing decisions as The Crypto Basic holds no responsibility for any financial losses incurred.