Bitcoin skyrockets, nearing $100,000 following a mysterious announcement by Donald Trump regarding a significant trade deal. With massive inflows into Bitcoin ETFs driving this surge, concerns arise about a potential consolidation above this symbolic threshold. In a volatile market, the next few hours will be crucial to predict the trend.
The Bitcoin has experienced a dramatic surge in the past few hours, rising from $95,700 to nearly $100,000 in just eight hours. This sudden spike follows an enigmatic statement from Donald Trump, hinting at a “major announcement” scheduled for May 8.
Bitcoin is currently trading at $99,100, up by 2.73% over the last 24 hours, hitting a peak of $99,401 on May 8. This surge is directly attributed to Trump’s announcement hinting at a major trade deal with an “important and highly respected” country.
Despite the macroeconomic pressure and Trump’s trade war, Bitcoin has rebounded by 1.38% in early Asian trading session. This upturn can be explained by significant fund inflows observed in the past two weeks into physical Bitcoin ETFs, surpassing $3 billion.
Although the Bitcoin surged from $95.7k to $99.4k in just eight hours, it seems to encounter a new resistance at $99,450. Some market participants believe that this sudden rally could be an anticipation of Trump’s announcement, followed by a wave of profit-taking and “sell the news.”
Uncertainty remains regarding a sustained consolidation of Bitcoin above the symbolic $100,000 mark. The volatility induced by this announcement could indeed lead to a rapid retest of this level, but buyers will need to defend it successfully to hope for a lasting upward trend.
From a chart perspective, the FBB indicates that Bitcoin might reach $100,000 in the next few hours, with a resistance zone between $100,500 and $102,000.
However, Binance’s liquidations map over the last 7 days shows a dominance of long positions. This could trigger a sharp drop leading to a long squeeze later on.
Moreover, several Hyperliquid whales have shorted BTC by over $60 million, prompting some to once again cry foul of “insider trading.” Clearly, volatility will continue to be present and prevalent today.
As we await Trump’s announcement, forecasts on Bitcoin’s price trend remain neutral, without a clear bullish or bearish bias. Analysts recommend closely monitoring the upcoming hours, which should provide crucial insights into the market direction.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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