Crypto Market Explodes: Bitcoin (BTC) soars above $100,000

The US and UK have just done a trade deal. The US and China are soon to begin talks on trade. The US stock market is continuing to recover. With this, and so much more good news hitting markets, risk assets have been unleashed. Bitcoin (BTC) is currently above $103,000 and there could be a lot more upside price action to come. US trade war heading towards peace The trade deal that has been reached between the US and the UK is the first agreement among all the global trade disputes, and having been reached in such a short amount of time, it bodes well for many of the other battles on trade. That said, even though the UK managed to achieve certain concessions, the country is probably slightly worse off than before 10% tariffs were imposed by President Trump. Most of the 10% tariffs will in fact remain, but Prime Minister Starmer has talked up the deal, saying that it will “save thousands of jobs in Britain.” As for US/China trade talks, these will begin on 10 May in Geneva. According to the Straits Times, Chinese traders have already started buying up shipping capacity, while four China-based exporters were reported to be preparing to ship goods to the US in the next few weeks. While trade agreements will have undoubtedly been priced in by the market, probably even into next year, such positive news will have possibly led to Bitcoin’s latest big surge, and a growing return to positive sentiment for the market as a whole. $BTC continued upside – or correction to come? Source: TradingView The daily time frame displays the large bull flag that $BTC had been traversing within for more than five months. The explosion out of the previous 8-month bull flag can also be seen. Just like in the case of the previous bull flag, the price may return to confirm the top trend line before starting the main upside price thrust. The Stochastic RSI for the daily time frame is showing that the indicators are approaching the top. This is the case for all of the lower time frame Stochastic RSIs, and so this could signal that a correction could be incoming. Could this take the price all the way back to the top of the bull flag at around $96,000? Quite possibly. There is major support just underneath the price at $102,000. This is the crucial area for the bulls to hold. It will likely be a battle between the bulls, with positive sentiment on their side, and the bears, perhaps being able to take advantage of faltering price momentum. $102,000 is critical support/resistance level for continued bull market Source: TradingView Zooming right the way out into the monthly time frame, one can really appreciate how important the $102,000 resistance is. It can be seen that if the bulls are able to keep the price above this level at the end of May, a new candle body would open above, and the next leg up of the bull market could begin. The Stochastic RSI on this monthly time frame is posturing a bullish cross up, as are the indicators for the Relative Strength Index at the bottom of the chart. Both of these major indicators will need to confirm in this position at the end of May for what could be a truly massive price explosion. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily