Bitcoin Smashes Through $100K – Here’s What the Smart Money Does Next
History made as BTC punches past six figures – now the real games begin. Traders are scrambling, institutions are recalculating, and your uncle who ’missed the boat’ in 2020 is suddenly a technical analysis expert.
The FOMO Trap: Retail investors piling in now resemble tourists buying umbrellas in a monsoon. Meanwhile, hedge funds quietly rebalance portfolios with 5% BTC allocations – because nothing says ’prudent risk management’ like betting on internet magic beans.
Hold or Fold?: True believers cite the coming supply shock post-halving. Skeptics whisper ’Tulips 2.0’ while secretly mining shitcoins. The only certainty? Volatility just got a adrenaline shot.
Pro Move: The 100K breakthrough changes everything – and nothing. Diamond hands aren’t made in bull markets. As Wall Street tries to ETF its way into relevance, remember: Bitcoin eats weak hands for breakfast.
Economic Tailwinds and Fed Rate Cut Expectations
A key catalyst for Bitcoin’s recent push is softer-than-expected U.S. inflation data.
The Consumer Price Index (CPI) report showed lower numbers than analysts anticipated. Consequently, this eased worries about long-term inflation and sparked renewed Optimism that the Federal Reserve may soon pivot to rate cuts.
Besides that, geopolitical developments have added further fuel. The United States and China have recently reached an agreement to temporarily lighten the trade tariffs.
For 90 days, the U.S. tariffs on Chinese imports will be reduced from 145% to 30 percent, while China reduces its retaliatory levy from 125% to 10%. This truce has calmed down the market anxiety on disruptions in global trade and propelled risk assets such as Bitcoin to move upwards.
However, caution still looms. Although optimism exists, the Federal Reserve is in the inflation control mode. Analysts believe that the Fed will need more economic weakness for it to take decisive action. In the meantime, traders seem willing to wager that rate cut may be in the offing.
Technical Trends Support Bullish Case
Technically, bitcoin has just closed a huge CME gap which is usually followed by huge price movements. This development which has caught the attention of market watchers brings with it a hint of the new leg up to $108,000.
At writing Bitcoin is trading NEAR to $104,000 with a 7.2% increase week to date.
The Relative Strength Index (RSI) is at 70.56, indicating overbought conditions. This may indicate a temporary retrace, but it’s a confirmation of bullish continuation if it remains strong above this level.
In addition, the MACD reveals increasing positive momentum. With the MACD line above the signal line, with no indication of reversal yet, the momentum remains strong for traders. This technical optimism correlates with larger macroeconomic trends too.
Conclusion: Is it Worth Buying BTC at Current Levels?
Analyst ColinTCrypto revealed Bitcoin correlation with the Global M2 money supply, boosting the bullish sentiment.
He observed that the current rally is similar to the previous one, when BTC increased from $76,000 to $105,000 between 8 April and mid-May, coming close to the $109,000 all-time high.
Focusing on the way Bitcoin echoed the Global M2 trend, Colin’s BTC prediction sees a potential breakout to more than $120,000 by the end of May, which would mean a new all-time high for Bitcoin.
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