In mid-May 2025, the price of Bitcoin (BTC) is experiencing a notable increase,
where it is currently trading near $104,786, approaching its all-time high of $109,000.
Support and Resistance Levels: The $100,000 level is considered a major psychological support. If the upward momentum continues, Bitcoin may face resistance at $107,000, with the potential to reach $120,000 if the upward trend persists.
• Momentum Indicators: The Relative Strength Index (RSI) is above 70, indicating a state of overbought conditions that may lead to short-term price corrections.
Underlying Factors
• U.S. Economic Policies: Recent increases are attributed to investor optimism following the signing of new trade agreements between the United States and the United Kingdom, and expectations of easing U.S. monetary policies.
• Institutional Interest: Digital asset funds have seen cash inflows exceeding $5.5 billion over the past three weeks, including $1.8 billion in Bitcoin products, reflecting increased interest from institutional investors.
• Legislative Developments: States like Arizona and New Hampshire have enacted laws allowing investment in digital currencies, enhancing the legitimacy of Bitcoin as an investment asset.
Future Expectations
• Price Forecasts: Some analysts expect the price of Bitcoin to reach $120,000 in the second quarter of 2025, with the potential to exceed $200,000 by the end of the year, especially if supportive policies for digital currencies continue.
• Warnings: Despite positive forecasts, experts warn of potential volatility linked to monetary policies and stock markets, which could lead to price corrections.
Summary
Bitcoin shows strong performance in May 2025, supported by positive technical factors and fundamentals. However, investors should exercise caution and monitor economic and regulatory developments that may affect the overall market trend.