Bitcoin Surges 33% to $100,000 on US-UK Trade Deal Optimism

Bitcoin has once again surpassed the $100,000 mark, marking the third time the cryptocurrency has reached this level since December 2024. This surge comes after a period of volatility, with the price jumping 33% in a few weeks following a plunge to $75,000. The recent rally has been bolstered by a wide-ranging deal between the US and the United Kingdom, which has eased trade tensions and provided a positive outlook for the global economy. The agreement has ignited a wave of optimism among investors, leading to a significant increase in demand for Bitcoin.

The cryptocurrency's price has been on an upward trajectory since early February, with analysts attributing the surge to a combination of factors, including the easing of trade tensions and the positive response to the Federal Reserve's decision to maintain interest rates. The Federal Reserve's decision to keep interest rates unchanged has provided a stable environment for investors, who have been rotating their investments into Bitcoin as a safe haven asset.

The recent surge in Bitcoin's price has also been driven by the cryptocurrency's growing acceptance as a legitimate investment asset. With more institutional investors entering the market, the demand for Bitcoin has increased, leading to a sustained rally in its price. The cryptocurrency's ability to withstand market volatility and maintain its value has made it an attractive investment option for many investors.

Bitcoin’s impressive surge back to $100,000 is a big win, especially since it was hovering around $74,000 just last month. This rebound shows that Bitcoin might be gearing up to hit even higher targets, like $109,000. Altcoins haven’t recovered so strongly yet, still far behind their 2024 highs.

Analyst Rekt Capital pointed out something interesting about Bitcoin cycles. In 2017, Bitcoin had 4 “Price Discovery Corrections” before reaching its peak, and in 2021, it had 3. In the current cycle, Bitcoin has just finished its first one, which could mean that we are still in the early stages, and a bigger rally could be coming soon.

The crypto market saw over $925 million in liquidations in the last 24 hours, with $800 million of that being from short positions, the biggest short squeeze since 2021. There are still big sell orders near Bitcoin’s all-time high of $109,500, which shows that the rally could continue longer. Moving averages and MACD still show strong support, and the upward trend could keep going. Bitcoin’s recent bull flag pattern also indicates potential for more gains ahead. The Fear and Greed Index has also moved to greed, with increased buying activity and interest.

Crypto analyst AlphaBTC pointed out that Bitcoin is trading within an ascending channel and its next target could be $106,000 or higher before it undergoes any correction. Analyst Egrag Crypto thinks that if Bitcoin breaks $109K, it could reach $170K by the end of the year. Changpeng Zhao is even more optimistic, predicting Bitcoin could hit between $500,000 and $1 million in this bull cycle.

However, some analysts have raised concerns about the sustainability of Bitcoin's recent rally. According to the analyst's forecast, the cryptocurrency's price could face resistance at higher levels, and investors should be prepared for potential volatility in the coming weeks. Despite these concerns, the overall sentiment towards Bitcoin remains positive, with many investors expecting the cryptocurrency to continue its upward trajectory in the near future.