- Bitcoin hits 14-week high on US trade deal hopes, industry buzz and technical breakout.
- Optimism surrounding US-UK trade deal, Sino-American talks underpin risk-on momentum, El Salvador’s BTC purchase strengthens upside bias.
- A clear break of three-month-old resistance pleases Bitcoin buyers.
- A break above $104,500 is needed to confirm bullish momentum toward a record high
Bitcoin (BTC/USD) surged to its highest level since January 31, breaking the $100K mark and reaching $104,160, before pausing early Friday.
Optimism around the US-UK trade deal and upcoming US-China talks boosted market sentiment, fueling gains in cryptocurrencies, especially Bitcoin.
El Salvador’s renewed Bitcoin purchases added further support, while BTC’s breakout above a three-month resistance level strengthened the bullish momentum.
Technical chart: Daily chart suggests continuation of upside momentum
Source: Trading view
A successful upside break of a three-month-old horizontal resistance surrounding $99,500-$100,200 helped BTC/USD bulls to post a 14-month high while backed by the bullish signals of the Moving Average Convergence and Divergence (MACD) indicator.
However, the overbought conditions of the Relative Strength Index (RSI) 14 oscillator highlight the immediate resistance.
As a result, the 50% Fibonacci Extension (FE) of Bitcoin’s August 2024 to April 2025 moves, near $104,500, becomes the key challenge for BTC/USD buyers.
If surpassed, Bitcoin could target the record high of $109,356, with further upside potential at the 61.8% FE level of $111,635.
Alternatively, BTC/USD pullback remains elusive beyond the aforementioned resistance-turned-support surrounding $99,500-$100,200.
Following that, Bitcoin sellers can target the 21-day and 200-day Simple Moving Averages (SMAs), respectively around $94,500 and $91,000.
In summary, Bitcoin buyers remain in control, but a major move like Thursday’s may not be immediate.
