TLDR
Bitcoin trading above $97,000 amid optimism over potential U.S.-China trade talks
Analysts project Bitcoin could reach $100K-$107K based on technical indicators
Strong institutional demand continues with $1.5B in Bitcoin ETF inflows
Short-term holder activity signals accumulation phase similar to previous rallies
AI tokens gaining traction with Kava Labs reaching 100,000 users
Bitcoin’s price has surged above $97,000 during Asian trading hours as markets respond positively to news of potential trade talks between the U.S. and China. Despite some skepticism about a deal being reached soon, the cryptocurrency market is showing renewed optimism after earlier concerns about tariffs.
“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 posts.
This development has helped Bitcoin recover from the price drop triggered by the White House’s announcement of tariffs earlier this year. Market participants now have $100,000 Bitcoin back in their sights.
The broader crypto market is also seeing gains. Dogecoin (DOGE) led major cryptocurrencies with a 4% rise in the past 24 hours. Other coins like Cardano’s ADA, XRP, Ethereum (ETH), and BNB increased between 1-3%, with the CoinDesk 20 index rising 2.2%.
On the prediction market Polymarket, bettors are giving only a 20% chance of a U.S.-China trade deal happening by June. This cautious outlook reflects concerns that the hawkish rhetoric from the White House may delay any agreement.
Technical Indicators Point Higher
Several on-chain metrics support a bullish outlook for Bitcoin. Crypto analyst Willy Woo expects Bitcoin to move to $108,000 next, while liquidation heatmaps project a $107,000 target.
The MVRV (Market Value to Realized Value) ratio has bounced off the 1.74 level after testing it on April 8, hitting 2.14 currently. This pattern is similar to the August-September 2024 trend and suggests Bitcoin has survived another market reset.
The percentage of Bitcoin supply in profit has also recovered, with the 7-day moving average reaching 87%. This high percentage indicates bullish investor expectations.
Trading volume has been strong during the recent range breakout, providing further evidence of market strength. The $95,400 level might see a retest, which could offer swing traders a buying opportunity.
Market analyst Axel Adler Jr. notes that Bitcoin’s on-chain momentum has entered what he calls the “start” rally zone, with a momentum ratio of approximately 0.8. He outlines three possible scenarios: an optimistic case where Bitcoin could reach $150,000-$175,000, a base case with Bitcoin trading between $90,000-$110,000, and a pessimistic scenario that could see a correction to $70,000-$85,000.
Institutional Interest Remains Strong
Institutional demand continues to grow, with $1.5 billion flowing into Bitcoin ETFs. Strategy, led by Michael Saylor, announced plans to raise $21 billion for more Bitcoin purchases, showing ongoing institutional confidence.
Investors are increasingly impressed by Strategy’s growing sophistication, highlighted by new valuation frameworks like BTC Torque and a strong focus on pricing its fixed-income instruments.
This institutional support, combined with strong liquidity and improving market depth, creates a favorable environment for Bitcoin’s continued price growth.
Flowdesk noted in a recent market report: “Momentum continues to build across crypto with spot flows broadening, alt activity heating up and subtle but meaningful shifts in market structure.”
They added: “As BTC ranges above $90K, undercurrents of risk appetite are growing stronger within both spot and derivative markets. Liquidity remains strong with rising volumes, surging weekend activity, and improving altcoin depth.”
Short-term holder activity also signals accumulation, similar to patterns seen in January and October that preceded significant rallies. This behavior often indicates that the market is positioning for a larger move.
AI Tokens Gaining Momentum
Artificial Intelligence tokens are performing well, with the market segment up 3% on Friday. This outpaces the CoinDesk 20 index, which rose 1.8%.
Kava Labs announced it has reached 100,000 users on its decentralized AI platform, driving interest in AI tokens. “People are turning to Kava AI because it offers two things most platforms don’t, verifiability and privacy,” said Kava Labs’ Scott Stuart.
Interest in decentralized AI is growing globally as users recognize the value of transparent AI systems not controlled by a handful of corporations.
Bitcoin now trades above key short-term resistance levels at $93,100 and $95,300, setting the stage for a potential move toward the $100,000 psychological barrier.
With strong on-chain metrics, growing institutional interest, and bullish technical indicators, Bitcoin appears positioned to continue its upward momentum in the coming days.
