Bitcoin Price Might Never Fall Below $100,000 Again
The price of Bitcoin saw a significant surge to $115,000 on Monday, marking a more than 1% increase in a 24-hour period. This rise in value was attributed to the optimism surrounding the easing trade tensions between the United States and China, as well as a renewed interest in risk assets among investors, which contributed to a positive sentiment in global markets.
Geoffrey Kendrick, who serves as the Head of Digital Asset Research at Standard Chartered Bank, expressed his belief that Bitcoin’s price may never drop below the $100,000 mark again if the favorable macroeconomic conditions persist throughout the week. In a note to clients, Kendrick highlighted the improvement in trade relations between the U.S. and China as a key factor that has shifted market fears into hope.
The recent statement made by U.S. Treasury Secretary Scott Bessent over the weekend, suggesting a potential postponement of restrictions on China’s rare earth exports for a year, coupled with reports of Beijing’s plans to purchase substantial quantities of U.S. soybeans, sparked a relief rally across various markets, including equities, commodities, and cryptocurrencies.
The ongoing trade negotiations between China and the U.S., expected to be finalized following the upcoming Trump-Xi summit in South Korea, have reignited risk appetite and pushed the bitcoin-to-gold ratio above pre-October 10 levels, when market volatility was triggered by threats of 100% tariffs.
Kendrick also pointed out the inflow of funds into spot bitcoin ETFs as a positive sign of strength in the market. With over $2 billion exiting U.S. gold ETFs last week, a significant portion of these funds flowing into bitcoin funds would serve as a vote of confidence for the cryptocurrency. Additionally, expectations for a 25-basis-point rate cut at the Federal Open Market Committee (FOMC) meeting on Wednesday are seen as bullish for Bitcoin.
In terms of technical analysis, Bitcoin faces resistance levels at $117,600 and $122,000, with bears currently holding dominance. However, if Bitcoin manages to surpass $122,000, the next target could be the upper boundary of a broadening wedge pattern at $128,000. Maintaining support levels at $106,900 is crucial for sustaining bullish momentum, with further support at the $105,000-$102,000 zone. A breach of these levels could lead to a test of the $96,000 support, which is considered a critical long-term level for the overall bullish trend in the market.
At the time of writing, Bitcoin was trading at $115,041, reflecting a 1.22% increase in the past 24 hours. Investors are closely monitoring upcoming earnings reports from tech and crypto giants like Microsoft, Meta, Google, Apple, Amazon, Coinbase, and Strategy, as positive outcomes could further bolster Bitcoin’s price and market sentiment.
