Bitcoin Surges 7% to $107,000 Amid Technical Rebound and Market Uncertainty

Bitcoin has recently shown significant volatility, with the cryptocurrency rebounding to reach $107,000. This surge was driven by a combination of technical factors and broader market dynamics. Bitcoin successfully defended the $100,000 level, achieving a modest rebound after a short-term downtrend. Prominent digital asset trader Rekt Capital noted that Bitcoin is converting its two-week descending trendline into a support level, suggesting that if it closes near $106,600 and establishes this level as support, further upward momentum could materialize. This technical outlook is supported by the observation that Bitcoin is transitioning into a trend of higher highs and higher lows, reducing the interpretation that it is undergoing unstable movements characterized by sharp rises followed by steep falls. Should this trend persist, a break beyond $107,000 is within reach.

Despite the technical upward momentum, broader market conditions cloud Bitcoin’s near-term prospects for explosive growth. Increasing uncertainty surrounding U.S. tariff policies has created headwinds. A U.S. court recently deemed mutual tariffs unconstitutional, while U.S.-China trade negotiations remain at an impasse, raising overall market tension. Investors are closely anticipating the release of May’s Consumer Price Index (CPI) data. Concerns linger that remnant tariff policies from the Trump era could push up prices for select goods. The Organization for Economic Cooperation and Development (OECD) forecasted that such tariff measures and related policy uncertainties could trim U.S. GDP growth to 1.6% this year and 1.5% in 2024. Alvaro Pereira, Chief Economist at the OECD, warned that rising trade barriers and heightened uncertainty over economic and trade policies have dampened business and consumer confidence. These factors risk stifling trade and investment, including reduced economic activity due to policy ambiguity, inflationary pressures tied to tariff hikes, and amplified financial market volatility.

The Fear & Greed Index, which tracks sentiment in the digital asset market, jumped to 62 (Greed) from the previous day’s reading of 52. A score closer to 0 indicates stronger sell pressure among investors, while a score near 100 reflects heightened buying activity. Despite the improvement, investors remain watchful amid persistent macroeconomic risks. As Bitcoin navigates through technical rebounds and external uncertainties, market sentiment suggests cautious optimism, with crypto traders monitoring key resistance levels and macroeconomic signals for further direction. If Bitcoin manages to build a fence of more than $107,000, this could mark the beginning of a bullish rally, attracting interest from new investors. However, analysts warn that Bitcoin could drop to $102,000 or even between $95,000–$97,000 in a bearish case, where accumulation might resume.