Bitcoin's price tested resistance near $98,000 Wednesday, trading around $96,959, as optimism surrounding US-China trade discussions contributed to gains in riskier assets. The cryptocurrency is attempting to break above the psychological $100,000 level.
The largest digital asset rose for a second consecutive day, climbing as much as 3.2% to top $97,714 before paring some gains. The rally follows a period of volatility and selling pressure.
This move aligns with broader market sentiment reacting positively to potential de-escalation in the US-China tariff standoff. Second-ranked Ether also saw gains, climbing as much as 4.2%.
On charts, Bitcoin shows strength, trading within a range that traders are watching closely for its next major move. A clean breakout and daily close above $100,000 would likely open the door to further gains.
Technical indicators show the price trading above the 200-period simple moving average (SMA) at $88,387 and the 200-period exponential moving average (EMA) at $90,723 on the 4-hour chart, reinforcing the bullish structure developing since mid-April. Volume has picked up slightly during the recent price advance.
Analyst Big Cheds recently highlighted Bitcoin's setup, pointing to the 4-hour chart where BTC is showing strength as it tests the upper bounds of its trading range.
Holding above the $94,000–$95,000 zone is seen as important to preserve bullish momentum. A drop below the $90,000 support zone would threaten the current structure.
The $98,000–$100,000 area has historically triggered selling interest. A decisive break and close above $100,000 will be essential to confirm a true breakout toward the previous all-time high near $109,000.
The market remains divided, with some analysts maintaining the bull run is likely to continue and others viewing the current rally as a bounce within a broader market structure.
Big Cheds noted that BTC is showing more resilience than he initially expected.
