May 07, 2025
By Our Correspondent
Bitcoin is currently trading within the range of $95,000 to $96,000, reflecting an increase of approximately 30% from its lowest point in April of this year. This price fluctuation aligns with President Donald Trump’s assertions regarding ongoing trade discussions between the United States and various nations, including China.
In a recent statement, China’s Commerce Ministry expressed its willingness to engage in dialogue with the Trump administration, although it noted that tariffs were a significant barrier. According to the Wall Street Journal, China is also considering a potential offer related to fentanyl, as Trump has often cited drug trafficking as a rationale for the tariffs. The forthcoming decision by the Federal Open Market Committee (FOMC) regarding interest rates is anticipated to be a crucial factor influencing Bitcoin’s price, as it will establish expectations for the latter half of the year.
Economists predict that the U.S. Federal Reserve will keep interest rates steady at 4.5%, while officials are likely to adopt a cautious stance due to persistently high inflation. They also foresee a gradual increase in prices as the effects of Trump’s tariffs materialize. Concurrently, there are concerns that the economy may be heading towards a recession, as recent data indicated a contraction of 0.3% in the first quarter, marking the worst performance since 2022. Consequently, officials may still consider a 0.25% rate cut at the June meeting, as anticipated by Polymarket traders, which could potentially ignite the next rally in Bitcoin’s price.
The daily chart indicates that the price of Bitcoin has experienced a significant increase over the past few weeks, climbing from a low of $74,330 to a peak of $97,927. It has surpassed the crucial resistance level of $88,655, which corresponds to the neckline of the double-bottom pattern at $76,665. Bitcoin has also established a mini golden cross pattern, as the 50-day and 100-day moving averages have intersected.
Leading oscillators, including the Relative Strength Index and the MACD indicators, are all showing upward momentum. Consequently, it is anticipated that the cryptocurrency will continue to rise, with bulls aiming for the resistance level at $100,000. A breakthrough above this threshold could signal further gains, potentially reaching the all-time high of $109,300.
