Bitcoin Approaches $100k: Market Drivers and Technical Insights

Bitcoin recently climbed above $99,000 but fell short of rising above $100,000, currently sitting above $98,000. The increase seems driven by potential US-UK trade deal expectations and the Federal Reserve’s decision to maintain interest rates. Technical analysis highlights key levels around $95,000, with current buyer sentiment in focus as traders watch for a break above $100,000.

Bitcoin has been making headlines this week, hitting a high of just over $99,000 for the first time since February. However, despite this substantial rise, it didn’t quite manage to breach that pivotal $100,000 mark. This morning, Bitcoin is sitting comfortably above $98,000, and notably, it has registered a near 5% increase just this month alone.

So, what’s driving this surge in Bitcoin prices? Two key factors appear to be in play. First, there are swirling expectations about a potential trade deal between the United States and the UK, as hinted at by former President Donald Trump. In fact, noted crypto analyst Anthony Pompliano suggests this agreement could set the stage for Bitcoin to reach new highs by 2025.

The second factor is tied to the Federal Reserve’s recent decision to keep interest rates unchanged for at least another month. This is happening despite US President Trump’s earlier threats to dismiss Fed Chair Jerome Powell, which creates an atmosphere some traders are interpreting as positive for cryptocurrencies.

In our earlier analysis from May 2, we noted a few technical trends. We extended an upward channel visible on the charts, emphasising the bullish trend that has seemingly resumed post-correction. This was illustrated with lines we’ve marked in purple. A critical observation has been how Bitcoin is behaving around the $95,000 mark, which has previously served as both a support and resistance line. This gives an impression of market equilibrium lately, as Bitcoin’s price began to stabilise there just a few weeks ago.

Yesterday’s upswing might suggest that buyer sentiment is taking the lead this time. But the real test will be how BTC/USD develops if there’s another attempt to surpass that $100,000 level—a significant psychological threshold.

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This analysis reflects the opinion of FXOpen and isn’t to be regarded as financial advice or a solicitation. It strictly represents the view of their operated companies, not an official recommendation regarding their offered products and services.