Bitcoin Nears $100,000 Mark Amid Tariff Talks, Investor Confidence
2min read Bitcoin has shown signs of retesting the $100,000 mark after a recent market sell-off triggered by Donald Trump’s tariff plans. The cryptocurrency is now approaching its highest level since late February, but the momentum could be slowed by fears of a recession unless the U.S. and China resume tariff discussions soon. The mixed on-chain signals might also increase volatility as Bitcoin approaches the $100,000 level.
The outcome of the tariff talks will significantly influence whether the economy enters a recession and the direction of Bitcoin’s price. Many experts are hopeful that trade discussions in May will alleviate economic concerns. However, Bitcoin might continue to rise even if a recession occurs. In the past 24 hours, around $34 million in Bitcoin trades were closed out, with buyers ending $8.5 million in positions and sellers closing $25.4 million in bets against Bitcoin.
Investor confidence in Bitcoin is growing, with large investors purchasing around $4 billion worth of the cryptocurrency in the last two weeks of April. Spot Bitcoin and Ethereum ETFs also saw strong inflows, with over $3.2 billion entering the market last week. This influx of capital suggests that investors are bullish on Bitcoin’s prospects.
Bitcoin’s netflow is currently negative by $39.79 million, indicating that more Bitcoin is being moved out of exchanges than into them. This trend suggests that investors are choosing to store their Bitcoin in private wallets, which can reduce selling pressure and support Bitcoin’s recovery. However, there is a risk of increased selling pressure around the $100,000 mark. Glassnode warns that if Bitcoin’s price continues to rise, long-term holders might start selling, as their profits are now close to 350%, a level where they have typically sold in the past. If Bitcoin crosses $100,000, it could trigger a wave of selling from these older investors.
Buyers are currently breaking through Fibonacci levels and holding the price above exponential moving average (EMA) trend lines. Bears are defending any further surges above $98,000, as Bitcoin faced a recent rejection. As of the latest update, the Bitcoin price trades at $97,182, surging over 0.7% in the last 24 hours. The rising 20-day moving average at $96,892 and a strong relative strength index (RSI) suggest that Bitcoin still has room to move higher. If it breaks above $99,500, the price could quickly jump to the key $100,000 level. Sellers will likely put up a strong fight there, but if buyers succeed, Bitcoin might climb to around $103,000.
On the other hand, sellers may attempt to drag the price back to the 20-day moving average, which is an important support level. If Bitcoin bounces there, the uptrend remains strong. However, if it drops below, it could fall further toward the 50-day average at $92,800. The overall sentiment remains bullish, but investors should be prepared for potential volatility as Bitcoin approaches the $100,000 mark.
