Bitcoin continues to showcase impressive strength, holding just shy of its all-time high after breaching the $100,000 level for the first time in months. As of Sunday night, the leading cryptocurrency was trading at $103,926, reflecting a minor 0.12% dip over the previous 24 hours.Earlier in the day, Bitcoin briefly topped $105,000, closing in on its January all-time high of $108,786, which now sits just 4.5% away. This milestone comes amid renewed bullish sentiment fueled by macroeconomic optimism and strong technical indicators.
Momentum Builds Above Key Moving Averages
According to Vincent Liu, CIO at Kronos Research, Bitcoin's price action remains "technically strong," as it continues to trade above both its 50-day and 200-day moving averages. Liu highlighted that rising institutional interest and a favorable 2025 macro outlook are forming the basis for what he described as a “plausible path toward a new all-time high.”
Despite the bullish tone, Liu also cautioned that broader economic data, such as the U.S. CPI release on May 13, may introduce near-term volatility, urging investors to stay vigilant and adopt diversified strategies.
Analysts Warn of Short-Term Overbought Conditions
While the market remains largely bullish, BTC Markets Analyst Rachael Lucas pointed out that Bitcoin's RSI is now deep in overbought territory. “This doesn’t necessarily indicate a reversal,” Lucas said, “but suggests that a short-term cooldown or sideways consolidation above $100K would be healthy.”
She added that maintaining price action above the psychological $100,000 level is crucial. A consolidation phase could build a solid base for the next leg upward.
US-China Trade Talks Boost Market Sentiment
Much of Bitcoin’s recent rally is being attributed to positive developments in U.S.-China trade relations. Over the weekend, negotiations in Switzerland reportedly concluded with both sides reaching an "important consensus," as per Reuters.
Further details are expected on Monday when U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will outline the progress made.
Presto Research Analyst Min Jung noted that this macro development is a key driver behind Bitcoin’s price surge. “The rally is part of a broader crypto market rotation,” Jung said, “with Bitcoin dominance approaching levels not seen since the 2021 bull market, potentially signaling an upcoming altcoin breakout.”
ETFs and Corporate Demand Strengthen BTC Outlook
Bitcoin’s sustained momentum is also supported by consistent inflows into spot Bitcoin ETFs and accumulation by major corporate treasuries, including firms like Strategy. These factors, according to Kronos’ Liu, are “critical for long-term price stability and further upside.”
Conclusion: BTC on Track for New ATH?
As Bitcoin stabilizes near $104,000, momentum appears to favor bulls. A strong macro backdrop, positive institutional flows, and optimistic technical indicators suggest that breaking the $108,786 ATH is within reach, though short-term pullbacks remain possible.
Traders are advised to monitor upcoming macroeconomic data, especially the U.S. inflation report, and adjust positions accordingly in what remains a high-volatility environment.
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