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▲ Bitcoin (BTC) surge/AI generated image ©
As risk asset preference revives in global financial markets and institutional investor funds steadily flow in, the leading cryptocurrency Bitcoin (BTC) has surpassed $80,000, reaching a three-month high. Major altcoins such as Ethereum (ETH) and XRP (Ripple) are also rising, and key macroeconomic indicator announcements scheduled for this week are expected to be a turning point for a further rally.
According to investment media FXStreet on May 4 (local time), Bitcoin rose approximately 1.7% over the past 24 hours, settling above the $80,000 mark. This marks the longest streak of weekly gains in five consecutive weeks since July last year. Ethereum climbed 2.1%, and XRP rose 1.6%, contributing to the bull market. This upward trend is a result of the strong risk-on sentiment in the US and Asian stock markets, which are nearing all-time highs driven by strong tech sector earnings, spreading to the virtual asset market. The Crypto Fear & Greed Index, which had lingered in extreme fear, also rose to 41, entering the neutral zone.
Geopolitical risks continue to be a key variable in the market. Conflicting signals from the Middle East persist, with Iran strongly opposing US President Donald Trump's order to escort non-combat vessels through the Strait of Hormuz, calling it a violation of ceasefire conditions. Oil prices, which had fallen at the beginning of the week, rebounded to the $110 per barrel mark, reflecting supply anxieties. Higher oil prices could fuel inflation concerns and rising Treasury yields, which could significantly impact Bitcoin's price trajectory.
Amid improved investor sentiment, strong institutional buying is acting as a solid downside support. According to on-chain data platform SoSoValue, Bitcoin spot Exchange Traded Funds (ETFs) saw a net inflow of $629.7 million last Friday, setting a record for five consecutive weeks of fund inflows. This sustained ETF demand absorbs market sell-offs and helps maintain the $80,000 mark, a key psychological and technical gateway.
Whether Bitcoin will continue its rally above $80,000 or face resistance depends on key events scheduled for this week. If the US non-farm payrolls (NFP) report, the first to be released since the Federal Reserve's hawkish pause, is strong, concerns about prolonged high interest rates could increase. Additionally, a slew of earnings reports from cryptocurrency-related companies like Coinbase, Marathon Holdings, CleanSpark, and MicroStrategy, as well as S&P 500 companies, and speeches by Fed officials are expected to directly influence market risk aversion sentiment.
From a technical perspective, Bitcoin has been moving within an ascending channel since early February, testing the $80,000 resistance level. If it firmly breaks above $80,000 on the back of upward momentum, it could target further gains to $83,500, then the Fibonacci retracement 38.2% level of $85,000, and even $94,000. Conversely, if downward pressure increases, it could retreat to the primary support level of $75,000, and if this level breaks, there is a persistent risk of a deeper decline past $72,500 and $70,000 to the April low of $65,000.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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