Explore the future trajectory of Bitcoin's price as it nears the $100,000 mark, while the Sovereign Fund that previously dismissed Bitcoin reports a $40 billion loss in the first quarter of 2025.
The price of Bitcoin (BTC) is currently hovering around $95,000, with anticipations of a potential retest of the $100,000 mark in the near future.
In a related development, Norges Bank Investment Management disclosed a loss of $40 billion for the first quarter on Thursday, attributing this to their investment in 'safe' US technology stocks while categorizing Bitcoin (BTC) as a 'risky' asset.
BTC Price Pauses Before $100K Revisit as Soverign Wealth Fund Reports $40B Loss
Over the last five days, the price of Bitcoin has surged by nearly 14%, reaching $95.6k.
While BTC has temporarily halted its upward trajectory, it is anticipated to approach $100K soon if the bullish trend persists.
Norges Bank Investment Management, which oversees $1,800 billion, reported a loss of $40 billion in a filing on Thursday.
Eli Nagar, CEO of Braiins Mining, highlighted the irony that the wealth fund refrained from investing in Bitcoin due to its volatility, deeming it 'too risky.'
Instead, the fund made substantial investments in 'safe' technology equities. According to CNBC, the firm has allocated 55% of its portfolio to the United States, including major tech companies such as Nvidia, Alphabet, Meta, and Amazon.
It is important for investors to recognize that the fund has indirect exposure to cryptocurrency markets, particularly Bitcoin, through companies such as MicroStrategy, Coinbase, Metaplanet, and others.
Bitcoin Price Evaluation: Will $100,000 Be the Next Milestone?
Currently, $BTC Bitcoin's value is approximately $94,552, following a positive close on Friday. The four-hour chart indicates that Bitcoin has broken free from a previous price range of $81k to $88.4k.
This upward movement has led BTC into a three-month consolidation zone, which spans from $93k to $102.5k. It is possible that consolidation will continue over the weekend due to Trump's tariff pause.
The advance into this price range suggests that bullish sentiment prevails; however, a detailed analysis reveals that this momentum may be waning.
The Relative Strength Index (RSI) is currently in the overbought territory and has shown lower highs, which diverges from the higher highs of BTC's price.
This discrepancy is known as bearish divergence and typically precedes price corrections. A similar divergence is observed in the Awesome Oscillator (AO).
Nevertheless, it is unlikely that Bitcoin will correct in the immediate future and may instead create another higher high, while the RSI and AO form another lower high.
This scenario would further extend the bearish divergence and position BTC within a critical reversal zone, ranging from $97.1k to $98.1k.
Investors considering short positions may find an opportunity here. Additionally, there is a possibility of a volatility-driven surge to $100K, necessitating caution among traders in this price region.
Although the short to medium-term outlook appears somewhat pessimistic, investors may anticipate a positive Bitcoin price forecast, projecting a sustained increase to $102,000, followed by $108,000, provided that the $98,000 to $100,000 range is successfully surpassed.
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