Bitcoin Price Nears $100K As Risk-Off Sentiment Sets In
Bitcoin price rose for the third successive day on Friday, gaining 1.1% to trade at $99,187 at the time of writing. Bitcoin price upside comes on the heels of US President Donald Trump’s statement earlier this week that expressed willingness to negotiate a solution to the tariff war with his Chinese counterpart, Xi Jinping.
Risk-off Sentiment Propels Bitcoin Price
Trump’s statement has eased investment jitters and helped build appetite for high-risk assets like cryptocurrencies. However, Bitcoin price upside will likely be limited by Federal Reserve’s hawkish stance. The central bank is concerned that US inflation rate is not sustainably on the downtrend, necessitating the need to keep interest rate higher for longer.
That could see safer assets like US treasuries offer competitive returns relative to Bitcoin, in addition to keeping US dollar value on the ascent. Nonetheless, a third successive daily gain by BTC augurs well for the market sentiment. That could be strengthened further if the crypto coin retests the $100k mark during the weekend. The absence of high-impact US macroeconomic data on Friday raises that prospect significantly.
Institutional interest in Bitcoin remains strong, and that adds propulsion to the price upside. For instance, Bitwise made a $24.1 million spot Bitcoin ETF purchase on Friday. meanwhile, BTC trading volume was up by 22% in the last 24 hours, signaling investors’ willingness to buy the product despite elevated price. That underlines growing bullishness around the asset.
Bitcoin Price Prediction
The momentum on Bitcoin price favours the continuation of the upside above $98,600. Immediate hurdle is likely to be at $99, 5500. The upward momentum will strengthen if the coin breaks above that level, potentially clearing the path to test the second resistance at $100,100.
Conversely, action below $98,600 will favour the sellers to take control. In that case, the BTC price trajectory is likely to go to the first support at $97,900. A break below that level will invalidate the upside and potential test the second support at $97,400.
