Bitcoin Price Analysis: BTC Nears $105,000 Amid Renewed Bullish Momentum
Bitcoin (BTC) soared to an intraday high of $104,916 as it tested the $105,000 level before losing momentum and dropping to its current level of $103,992. The flagship cryptocurrency’s momentum stalled over the weekend after surging past $100,000 on Thursday.
BTC marginally increased over the past 24 hours, trading around $104,196. Analysts expect the price to continue pushing higher despite the weekend lull.
Goldman Sachs Betting On Bitcoin
Goldman Sachs has put quite a few eggs in the Bitcoin basket, betting $1.4 billion on the asset through BlackRock’s IBIT ETF. The stake in BlackRock’s ETF makes the bank the largest institutional holder of the product, with 30.8 million shares. The acquisition marks a 28% increase in a single quarter, allowing Goldman Sachs to surpass Brevan Howard to establish itself as the primary institutional investor in IBIT. The bank has built an impressive crypto portfolio worth $2.04 billion, diversified across several ETFs. The portfolio includes $1.4 billion in BlackRock’s Bitcoin ETF, $300 million in Fidelity’s ETF, and a $500 million split between the Ethereum ETFs of both managers.
Goldman Sachs’ pivot towards Bitcoin and crypto should come as no surprise. The bank anticipates a rate cut by the Federal Reserve in the second half of the year after revising its inflation figures upwards.
“Goldman now expects core PCE to rise to 3.5% this year versus 3.0% under previous assumptions for less aggressive tariffs. They expect the Fed to cut three times in the second half of the year to address the hit to growth and employment.”
Bitcoin To Go Beyond $130,000?
Bitcoin (BTC) has registered an impressive jump after a sluggish start to the year. The flagship cryptocurrency reclaimed $100,000 on Thursday and could move towards its all-time high if it can get past the $105,000 mark. BTC’s rally has buoyed the rest of the crypto market, with Ethereum (ETH) and other altcoins registering substantial rallies. One analyst has shared an update on their Bitcoin analysis, stating that Bitcoin and the crypto market witnessed substantial bullish momentum following Donald Trump’s election victory. The analyst highlighted that Bitcoin was breaking above a significant price level as a result of the post-election rally. The flagship cryptocurrency broke above its “minor high” around the time of its former all-time high in November.
The analyst stated that based on its historical pattern, BTC goes on a parabolic run whenever it surpasses the minor high during the cycle. The November 2024 breakout formed a cup-and-handle pattern, often considered a bullish pattern, signaling the continuation of its upward trend. BTC continued to rally until it reached $100,000 but faced a substantial correction to around $74,000 after reaching its all-time high in January. However, it experienced only a minor pullback to its “minor high” before resuming its uptrend. This prompted the analyst to put the cup-and-handle target for the asset at $137,000.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) surged over 2% on Saturday after President Trump announced a potential breakthrough in trade talks with China. BTC’s rally also extended to other altcoins, which also registered significant rallies. Trump posted on his Truth Social, stating,
“A very good meeting today with China in Switzerland. Many things were discussed, and much agreed to. A total reset negotiated in a friendly but constructive manner. We want to see, for the good of both China and the US, an opening up of China to American business. GREAT PROGRESS MADE!!!.”
Trump’s statement came after high-level talks in Geneva where US and Chinese officials met to de-escalate an intense trade war due to tariffs. Markets were swift to respond, interpreting it as a sign of easing tensions Bitcoin’s rally comes as global markets record a surge in liquidity. Analysts believe the surge in liquidity is powering the flagship cryptocurrency’s ascent to $100,000 and beyond. Raoul Pal, founder of Global Macro Investor, highlighted the strong correlation between Bitcoin and global M2 liquidity, stating that despite geopolitical tensions, recession risks, and other factors, rising liquidity has been the dominant force in Bitcoin’s price action.
Pal stated that expanding liquidity is responsible for 90% of Bitcoin’s price action and nearly 97% of the Nasdaq’s performance.
BTC registered a notable increase on Thursday (May 1), rising to $96,458. Price action remained positive on Friday as BTC registered a marginal increase and moved to $96,939. Selling pressure returned over the weekend as the price fell 0.98% on Saturday and 1.66% on Sunday to settle at $94,390. Despite the bearish weekend, BTC registered a marginal increase on Monday and settled at $94,773. Buyers retained control on Tuesday, with the price rising over 2% to reclaim $96,000 and settle at $96,845. A marginal increase on Wednesday allowed BTC to claim $97,000 and settle at $97,013.
Source: TradingView
Bullish sentiment intensified on Thursday as markets rallied. As a result, BTC surged over 6%, shattering the $100,000 barrier and settling at $013,096. However, buyer exhaustion led to a marginal decline on Friday as the price dropped to $102,851. Price action turned positive on Saturday after President Trump announced a breakthrough in US-China trade talks. As a result, BTC rose almost 2% to $104,617. The current session sees BTC marginally down as buyers and sellers struggle to establish control.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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