Bitcoin Passes $100K as Uncertainty Turns Into Optimism
Pullback Probability Increases. RSI Shows Signs of Overextension
The OG crypto soared to new heights after traders and investors entered a buying frenzy sparked in part by Fed Chair Powell’s comments and in part by the easing of the tariffs situation. The crypto market reached a capitalization of $3.1 trillion, which is the highest in 8 weeks, and most Top 10 coins are posting massive gains.
Earlier in the week, Bitcoin bounced at $95K support and was already bullish before Wednesday’s Fed Meeting. The rate remained unchanged, as widely expected but Fed Chair Powell sent the market higher during his press conference. He highlighted risks coming from persistent inflation and limited economic growth – mostly triggered by the new tariffs introduced by President Trump. This increased Bitcoin’s appeal as a protective asset and reignited the “digital gold” narrative where BTC is considered a hedge against risk.
Representatives of the U.S. and China are set to meet over the weekend to try and reach common ground on the tariff situation. There are also talks of negotiations between the U.S. and the U.K. Positive results will probably send the crypto market higher, increasing risk appetite and boosting confidence.
Bitcoin last traded at $100K in early February and reached its lowest point of this year on April 7, at $74,434. The downfall was triggered by the news that President Trump is implementing higher tariffs, so the question is: will we see a new All-Time High if the trade war ends?
Chart Analysis – BTC/USD
Bitcoin climbed more than 33% since early April, which means that the asset is approaching overbought levels. This is also evidenced by the Relative Strength Index (RSI), which surpassed its 70 level and is now curving downwards. Bearish divergence is still not present, which means there are no major warning signs of a reversal.
Given the fact that the bullish move did not show a substantial pullback since it started at $74K, it is likely to see a bounce from the current levels or in the near future. On the other hand, BTC just broke its previous high located at $97,940, broke the massive $100K level, and is showing bullish momentum.
If $102,600 is broken, the next place where a pullback may start is $105K. As for support, the first major barrier is $100K (from a technical and psychological perspective), followed by $93,500 (the previous low).
