After posting a strong recovery through April, Bitcoin is again in the spotlight, lifting prices from early-month lows near $80,000 to above $94,000. The sharp rebound has brought BTC within striking distance of the $100,000 psychological milestone, with market watchers closely tracking its next move.
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Technical Indicators Signal a Critical Test for Bitcoin
The cryptocurrency is currently hovering just below $95,000, showing signs of momentum and flashing caution signals. On the daily chart, Bitcoin is brushing against the upper Bollinger Band, a technical level often associated with overbought conditions. The upper band stands near $98,431; the lower support sits at $78,124, and the midline hovers around $88,278.
Various market indicators show that traders are implementing greater caution in their operations. The Relative Strength Index marks 67.78, slightly under the overbought level of 70. The current RSI reading of 67.78 shows a market moving away from its peak growth momentum despite not being in an overheating state.
A price rise above $98,500 may activate a new round of buying activity for BTC that could direct its price toward $100,000. Further, the inability to preserve current market strength could initiate a price correction that may find support at approximately $88,000.
Institutional Confidence and Energy Pressures Shape BTC Outlook
In the broader context, institutional interest and liquidity expansion fuel bullish sentiment. According to Presto Research’s Head of Research, Peter Chung, Bitcoin will reach $210,000 by year-end. He cited ongoing institutional adoption and Bitcoin’s dual appeal as a high-beta asset and a digital hedge as reasons behind the bold projection.
New competitive dynamics related to energy consumption have emerged because Bitcoin mining operations face escalating competition from Artificial Intelligence data facility operations. Industry dependence on cheap electricity has created competition for energy access, which will transform mining profitability.
Bitcoin’s circulating supply could receive support from rising energy costs if less efficient miners need to shut down because of increased demand from AI data centers.
With Bitcoin nearing the $100,000 mark, investors are watching closely for signs of either continuation or correction. Short-term Bitcoin movement will depend heavily on technical indicators and power supply events.
Also Read: Banks and Government Already Locked Their XRP in Escrow, Expert Issues Critical Warning to Investors
