Bitcoin Nears $97,000 as Crypto Market Gains 29% in a Month

Bitcoin (BTC) is currently trading just below $97,000, and recent movements in traditional markets suggest potential further gains. After rebounding from the $96,244 support level, BTC has maintained its position despite ongoing macroeconomic volatility. The recovery of the S&P 500 from its April lows is being interpreted as a positive signal for risk assets, including cryptocurrencies.

Over the past month, the total crypto market capitalization has increased by 29%, while the S&P 500 has declined by 2%. Bitcoin is currently consolidating just below the $97,500 resistance level. A successful breakout could pave the way for further gains, potentially reaching $98,500 and $99,438.

Key levels to monitor include immediate support at $96,244 and key resistance levels at $97,500, $98,500, and $99,438. The 50-day Exponential Moving Average (EMA) is at $95,407, and the Moving Average Convergence Divergence (MACD) indicator is bullish but moderating.

The divergence between Bitcoin and the Nasdaq is notable. As of early May, Bitcoin has risen by 2.7%, while the Nasdaq has declined by 4.5%. The Nasdaq continues to face challenges due to interest rate uncertainty and waning momentum in the tech sector. In contrast, Bitcoin has benefited from ETF-driven flows and the prospect of more accommodative monetary policies.

Bitcoin has reclaimed its 50-day EMA, while the Nasdaq remains below this level, suggesting a potential shift in market leadership. This divergence has sparked discussions about a possible decoupling of Bitcoin from traditional equities.

Recent earnings reports from major corporations have exceeded expectations, with Microsoft reporting a 13.2% year-over-year revenue increase and Meta delivering a strong performance. The S&P 500 has climbed from 4,835 to 5,635 in less than a month. Additionally, the Federal Reserve is considering resuming asset purchases, which could boost liquidity-sensitive assets like Bitcoin. Trade tensions between the U.S. and China have also eased slightly, with new waivers and tariff adjustments indicating a de-escalation.

Several factors are driving the bullish outlook for Bitcoin, including improving ETF demand, a favorable liquidity backdrop, strong earnings from major corporations, and the Federal Reserve's more dovish policy stance. Bitcoin's outperformance relative to tech stocks further supports this optimistic view.

Over the past six months, the crypto market has risen by 29%, while the S&P 500 has lost ground. With Bitcoin holding above key technical levels and macroeconomic conditions improving, the risk-reward profile appears to favor the bulls, at least in the near term.