TLDR
- Bitcoin has broken above $97,000, recovering from April’s drawdown
- Strong on-chain metrics show Bitcoin has survived another bearish reset
- Liquidation heatmaps project potential targets of $107K and $110K
- U.S.-China trade talk optimism is contributing to market relief
- High trading volume during recent range breakout signals more gains ahead
Bitcoin has surged above $97,000 during Asian trading hours, continuing its recovery from April’s market drawdown. The cryptocurrency broke through key short-term resistance levels at $93,100 and $95,300, with analysts now eyeing potential targets above $100,000.
The recent price action came alongside optimism that the United States and China are working toward a trade deal. “The U.S. has proactively reached out to China through multiple channels, hoping to hold discussions on the tariff issue,” according to Chinese state media.
This apparent trade detente has helped repair market sentiment after hawkish rhetoric from the White House earlier this year had caused a drop in Bitcoin’s price.
On-chain metrics are painting a bullish picture for Bitcoin. The MVRV (Market Value to Realized Value) Bands show a bounce off the 1.74-level after testing it on April 8, reaching 2.14 at the time of reporting.
This pattern mirrors the August-September 2024 trend when Bitcoin recovered from the yen carry trade unwind.
Market Structure Supports Higher Prices
Similarly, the percent supply in profit oscillator has bounced from its long-term mean at 74.8%. The 7-day moving average of this metric now stands at 87%, indicating strong investor expectations.
Trading firm Flowdesk noted in a recent market update: “Momentum continues to build across crypto with spot flows broadening, alt activity heating up and subtle but meaningful shifts in market structure.”
The firm added that liquidity remains strong with rising volumes, surging weekend activity, and improving altcoin depth.
The 6-month liquidation heatmap reveals few liquidity pockets to the south, with major levels at $83,000 and $74,100âfar below current prices. To the north, $100,000, $106,800, and $110,200 appear to be the next magnetic zones.
The $96,600 liquidity cluster has already been swept as prices broke out of a short-term range formation with high trading volume. The $95,400 level might see a retest, potentially providing swing traders with a buying opportunity.
Institutional Demand Growing
Bitcoin’s rise is also supported by increasing institutional involvement. Michael Saylor’s Strategy is reportedly raising $21 billion for more Bitcoin purchases.
According to Presto Research, investors are increasingly impressed by Strategy’s growing institutional sophistication, highlighted by new valuation frameworks and a strong focus on accurately pricing its fixed-income instruments.
The cryptocurrency market as a whole is showing signs of health. Bitcoin ETF inflows have reached $1.5 billion as institutional demand grows.
Alternative cryptocurrencies are also seeing upward movement. Dogecoin led gains among major cryptocurrencies with a 4% rise in 24 hours. Cardano’s ADA, XRP, Ether, and BNB rose between 1-3%.
AI-related tokens are performing well, up 3% following news that Kava Labs reached 100,000 users on its decentralized AI platform.
If the on-chain indicators prove correct and the market reset is indeed over, Bitcoin could surge beyond $100,000 in the coming days, with analysts like Willy Woo expecting a move to $108,000 next.
Bitcoin is trading with a strongly bullish short-term bias, making $107,500 and $110,000 feasible price targets in the near future.
