Summary:
⚈ Bullish momentum aided by Trump policies and global instability like India-Pakistan
⚈ $100K may act as psychological resistance amid rising short positions and uncertainty
Late on May 7 and in the early hours of May 8, Bitcoin (BTC) rapidly advanced, adding more than $2,500 within hours.
At press time, it needs to rise a mere 0.41% – less than $500 from the current $99,593 value – more to hit the psychologically important $100,000 threshold.
The situation for the world’s premier cryptocurrency appears favorable for reaching the milestone. On Tuesday, May 6, it broke the downtrend, bouncing off the lows near $94,000 and thus regaining a powerful uptrend.
Why Bitcoin can smash above $100,000
External developments, which have been a dominant factor in BTC’s performance so far in 2025, also appear bullish for the asset. President Donald Trump unveiled a series of bullish catalysts for the stock market and has reignited investor optimism.
Bitcoin also has an opportunity to regain some of its reputation as a safe haven and has arguably already started making the effort. At least part of the upswing has been driven by the escalating India-Pakistan armed conflict.
The fact that BTC has broken through all three of its previous resistances—the ones near $97,800, $98,567, and $99,551—and that some cryptocurrency analysts, such as Michaël van de Poppe on X, have noted that long-term support is holding, reinforce the bullish outlook.
Interestingly, though the long/short ratio is close to its one-month lows and gives a reading of 0.819, the latest upsurge appears to have forced some bears to capitulate. It is yet to be confirmed if the slight drop results from growing confidence or a temporary disturbance due to forced liquidations.
Featured image via Shutterstock
