Bitcoin Surges 25% in May, Eyes $100,000 Mark

Bitcoin is currently trading near $96,739, with its sights set on surpassing the $100,000 mark. Key levels to monitor include $94,657 as a support level and $97,828 as a resistance level. The cryptocurrency has recently broken through several short-term resistance levels, including $93,100 and $95,300, with analysts now focusing on potential targets above $100,000. The price of Bitcoin has been extending its gains, trading above $97,000 after breaking above the key resistance level of $95,000 the previous day. This upward momentum has been driven by various factors, including miner economics and the increasing adoption of Bitcoin by institutional investors.

The recent price movements have been supported by a significant amount of Bitcoin being bought between $95,193 and $97,437, totaling 649,600 BTC. This support, worth $61.6 billion, could protect Bitcoin from potential dips. Key downside support levels are identified at $93,625 and $91,521. A clean break above $97,000 with high volume could initiate a new leg up, targeting the psychological $100,000 level and beyond.

Bitcoin's journey has not been smooth, with a recent correction demonstrating the volatility of the market. After falling to 2025 lows near $75,000 on April 7 and April 8, as Liberation Day tariffs pushed stock and cryptocurrencies lower, and bond yields and gold higher, BTC set an upward course and achieved a multi-month high above $97,000 on May 1. The world’s premier cryptocurrency has entered a seemingly stable zone between $96,000 and $97,000 in the last 24 hours and is, at press time on May 2, changing hands at $96,739.

Under the circumstances, Bitcoin is unlikely to make a major move unless it falls below the nearest support zone, $94,657, or above the resistance, $97,828. Simultaneously, though a strong move beyond either of the barriers could lead to greater changes, it is relatively unlikely BTC will immediately be able to reclaim its past highs or crash to its recent lows. The world’s premier cryptocurrency has been moving in bursts throughout the bull market, which started with a major Solana (SOL) rally in late 2023. Examining the long-term charts reveals that most of the gains that eventually took Bitcoin to its all-time high (ATH) above $109,000 and, verily, to its current relatively high above $96,000 were achieved through short and strong upsurges followed by protracted periods of relative stagnation.

Unless BTC makes a large move in the coming days, it could spend most of May trading within its current range, with any moves below the nearest support or above the resistance rapidly increasing pressure and returning it to the prevailing equilibrium. Simultaneously, if Bitcoin’s price moves more, a downside appears more likely than an upside. The cryptocurrency’s relative strength index (RSI) came in at a high of 69.88, thanks to the strong rally in the previous two weeks, positioning BTC as dangerously overbought.

Analysts have highlighted several scenarios for Bitcoin's future price movements. In an optimistic case, the momentum ratio climbing above 1.0 and holding could indicate a potential rally toward the $150,000–$175,000 range. However, it is important to note that these are forecasts and not guaranteed outcomes. The actual price movements will depend on various factors, including market sentiment, regulatory developments, and technological advancements. Investors and analysts are closely watching these key levels as Bitcoin aims to return above $100,000. The cryptocurrency's recent performance and the support it has received from institutional investors suggest that it has the potential to reach new heights. However, it is essential to remain cautious and consider all possible scenarios when making investment decisions.