Bitcoin price inches closer to $100K as traders react to Powell hawkish tone
BTC rallies on Powell inflation stance
Bitcoin's price has witnessed a strong rally this week that has pushed it within striking distance of the long-watched $100,000 level, fuelled by a wave of consistent bullish momentum and macro-driven optimism.
The cryptocurrency jumped as high as $99,400 during Thursday’s Asian session, gaining 2.45% within a few hours. This move extended its weekly advance to nearly 5%, marking four straight days of upward closes.
The immediate catalyst for Thursday’s surge was Federal Reserve Chair Jerome Powell’s post-FOMC comments, where he acknowledged elevated inflation risks and ruled out near-term rate cuts. Contrary to what might typically pressure risk assets, crypto traders interpreted Powell’s stance as supportive in the medium term, possibly anticipating that inflation resilience may preserve demand for decentralised assets like Bitcoin.
Bitcoin RSI enters overbought zone as volume surges near $100K resistance
On the technical side, Bitcoin’s 4-hour and daily charts show the RSI hovering near overbought levels. This suggests that the recent rally may be overextended in the short term, making the psychological resistance at $100,000 even more significant. Traders will likely watch for a strong breakout or rejection at this zone.
BTC price dynamics (April - May 2025). Source: TradingView
Volume during Thursday’s session expanded alongside price, a sign of conviction behind the move. However, Bitcoin is still facing a tight window. Any failure to clear $100,000 could prompt a pullback toward the reinforced demand zone between $95,800 and $97,000, where the 20 and 50 EMA now converge. A deeper retracement below this support would expose the triple-bottom region around $92,900.
Overall, Bitcoin’s uptrend is fuelled by both technical momentum and a recalibration of macro expectations. But the path forward hinges on how traders respond to the looming $100,000 test. A decisive breakout could flip the narrative, while a rejection might trigger profit-taking.
Bitcoin jumped to a 5-month high of $97,770 after U.S.-China trade talk news sparked fresh risk appetite. Despite reclaiming key EMAs, weak trading volume limited momentum above the $100K mark.
