According to Cointelegraph, Bitcoin and gold rose due to Japan's debt issues reaching a 'boiling point'. Bitcoin bulls have a target price of $108,000, and although there has been corporate buying, some believe the current uptrend may suddenly end.
Bitcoin maintained pressure on $108,000 during Wall Street's opening on May 21, with traders pointing out several bearish divergences. BTC/USD approached the day's range top at the start of the U.S. trading session.
Japanese government bond yields soared above 3%, causing market volatility. QCP Capital stated that Japan's debt issues have reached a 'boiling point', driving up cryptocurrencies and gold, with gold reaching $3,320 per ounce.
QCP pointed out that the recent rise of Bitcoin is driven by corporate accumulation, and breaking through historical highs may reignite retail interest. Strategies and Metaplanet are the main buyers currently, and if their buying slows down, it may trigger profit-taking by other market participants.
Trader Roman warned that Bitcoin's relative strength index (RSI) has shown three bearish divergences on the daily chart, which may provide a short-term entry opportunity before a retest at $101.
Despite macroeconomic headwinds, Bitcoin has shown significant resilience over the past month. QCP noted that breaking new highs may trigger FOMO, attracting retail funds and pushing prices higher.
