Bitcoin Nears $95,000, Traders Watch for Breakout

Bitcoin (BTC) is currently trading near $95,000, with the Relative Strength Index (RSI) approaching overbought territory, sparking a breakout watch among traders and analysts. The RSI stands at 67.78, just below the overbought threshold of 70, indicating that Bitcoin may be entering a potentially exhausted state after a powerful rally from April lows near $80,000.

From a technical perspective, Bitcoin’s daily chart shows prices hovering just below $95,000, brushing against the upper Bollinger Band. The Bollinger Bands (BB), calculated using a 20-day simple moving average and 2 standard deviations, shows the upper BB stands near $98,431, the lower band around $78,124, and the midline support near $88,278. If Bitcoin can break cleanly above $98,500, it may ignite a rapid move toward the psychological $100,000 mark. Failure to hold current levels could see a retracement toward support near $88,000.

According to crypto research firm Presto Research, Bitcoin has shown strong resilience in April, bouncing sharply from early-month lows and now trading above $94,000. Presto noted that the rally has set the stage for either a continuation higher or a corrective pullback, depending on upcoming technical and macroeconomic shifts. Peter Chung, Head of Research at Presto, reiterated his year-end target of $210,000 for Bitcoin in a recent interview, maintaining confidence in Bitcoin’s potential despite macro volatility. According to Chung, institutional adoption and global liquidity expansion remain key drivers behind his bold projection, effectively a 120% upside from current levels.

Chung explained that Bitcoin acts like a “risk-on asset” most of the time, benefiting from network effects similar to internet companies. However, during periods of geopolitical stress or financial instability, Bitcoin tends to pivot into its “digital gold” behavior — serving as a safe-haven asset. Notably, both Bitcoin and gold have rallied more than 40% over the past 12 months, though Bitcoin’s price action has remained more volatile and spiky compared to gold’s steady climb.

A rising structural debate is brewing over the battle for cheap electricity between Bitcoin miners and AI data center operators. While Bitcoin’s supply side is fixed through its halving cycle, its mining profitability hinges on electricity costs. Chung believes Bitcoin miners will continue operations as long as price appreciation justifies the power costs, i.e., higher BTC prices could offset the rising competition from AI data centers. However, if competition from AI firms sharply drives up energy prices, less efficient Bitcoin miners may be forced offline, tightening circulating supply and strengthening price support over time.