Bitcoin (BTC) Price Breaks Through Resistance, Approaching All-Time High

Bitcoin broke through several key resistance levels and approached its all-time high of $109,350 recently. The cryptocurrency is currently trading around $105,500, just 3.6% away from reaching a new record.

Recent Developments

Bitcoin’s impressive rally began as it formed a base at the $96,500 support zone and managed to clear several resistance levels, including $98,800 and $102,000.

After reaching a local high of $104,943, Bitcoin encountered resistance and entered a period of consolidation. At present, it is trading above $103,500 and the 100-hour Simple Moving Average.

Technical Analysis

On the hourly chart, a bullish trend line is forming with support at $103,500. If Bitcoin breaks through the $104,500 and $105,000 resistance levels, it could potentially rise to $106,200 and eventually $108,000.

U.S.-China Trade Deal

The cryptocurrency market received a significant boost following a trade agreement between the United States and China. After two days of high-level negotiations in Geneva, both countries announced a temporary reduction in tariffs.

The United States cut tariffs on Chinese goods from 145% to 30% for a 90-day period. China reciprocated by lowering tariffs on U.S. goods from 125% to 10% over the same duration.

This surprise announcement triggered Bitcoin’s surge past $105,000. The trade deal comes after weeks of escalating tensions that had threatened to increase global inflation.

Upcoming CPI Data

With trade tensions easing, investors are now focusing on the upcoming Consumer Price Index (CPI) data. The April CPI, due this Tuesday, is expected to show inflation easing to 2.3% year-on-year from March’s 2.4%.

Market analysts believe a continued softening of CPI could raise Federal Reserve rate cut expectations, providing another bullish catalyst for Bitcoin.

Even if the CPI comes in higher than expected, it might be dismissed as backward-looking, reflecting April’s tariffs rather than the recent de-escalation in trade tensions.

Federal Reserve

The Federal Reserve recently kept its benchmark interest rate unchanged at 4.25% to 4.5%. However, Chairman Jerome Powell offered dovish hints, stating that “the underlying inflation picture is good” and calling the inflationary impact of tariffs short-lived.

Bitcoin’s recent performance is also supported by continuous inflows into spot exchange-traded funds (ETFs). BlackRock’s spot Bitcoin ETF (IBIT) has registered net inflows for 20 straight trading days, accumulating over $5 billion in investor money.

Crypto Market Performance

In other cryptocurrency news, Ethereum (ETH) gained 39% to reach $2,500 last week, while other major altcoins, including XRP, Dogecoin (DOGE), Cardano (ADA), and Solana (SOL), saw gains of 9.7%, 56%, 19%, and 20%, respectively.

According to HTX Research, there are no signs of speculative frenzy yet, suggesting the rally could continue. Bitcoin options’ implied volatility remains stable in the 50%-55% range, well below the extreme levels typically seen at market peaks.

If Bitcoin fails to rise above the $104,500 resistance zone, it could face a downside correction. Immediate support is located near $103,500, with major support levels at $102,800 and $100,500.

As long as yields do not climb back above 4.8% and ETF inflows remain consistent, Bitcoin is likely to consolidate in the $105,000-$115,000 range as it awaits the next breakout trigger.