Bitcoin Breaks $97K: Fourth Week of Gains Signals Bull Run

Current Price and Performance

Bitcoin has shown significant strength this week, trading around $95,000-$97,000 as of May 5, 2025.

The cryptocurrency reached a 70-day peak above $97,000, marking what’s expected to be its fourth consecutive week of gains.

This upward momentum follows several months of volatility and consolidation.

Key Drivers of Current Price Action

Several factors have contributed to Bitcoin’s positive performance this week:

1. Michael Saylor’s MicroStrategy announced a Q2 BTC purchase plan, adding to market optimism

2. The Arizona State passing a bill to establish the first Bitcoin ETF reserve

3. Strong inflows into Bitcoin ETFs, with approximately $591 million in net inflows in a single day last week, part of over $3.3 billion of inflows

4. Increasing decoupling from gold, with Bitcoin showing upward momentum as gold enters a consolidation phase

Technical Analysis

The technical indicators are predominantly bullish:

• The Fear & Greed Index is displaying a score of 64 (Greed), with market sentiment at 76% bullish

• The RSI has surged past 67, its highest level since February, indicating robust buying pressure

• Bitcoin’s 200-day moving average has been rising since January 5, 2025, signaling a strong longer-term trend

• Price has comfortably broken past the 200-day EMA and is holding above all key moving averages

Trading Volume and Market Activity

Trading activity has shown significant strength:

• The 24-hour trading volume is $78.06 billion USD with a current market cap of $1.98 trillion

• Volume has spiked, with a 24-hour trading volume increase of 18.5%, reaching $32.4 billion on major exchanges

• Bitcoin’s market capitalization sits at $1.78 trillion, reflecting steady trading activity

Short-Term Outlook

The immediate outlook for Bitcoin appears positive, with analysts expecting continued momentum:

• The weekly structure supports a potential retest of $95,000 early next week

• According to forecasts, the price of Bitcoin is expected to increase by 24.98% over the next week and reach $119,335 by May 9, 2025

• If sentiments remain bullish, Bitcoin may test its $100k mark next week

• Bitcoin Futures for May 2025 are trading at $94,635.00, down 2.94% in the most recent session

Conclusion

Bitcoin continues to demonstrate resilience and strength in the current market environment.

With consistent ETF inflows, institutional interest, and positive technical indicators, the outlook for the coming week appears promising.

However, as with all cryptocurrency investments, traders should remain vigilant for potential volatility and unexpected market shifts.

As the market approaches the psychological $100,000 level, increased attention and trading activity can be expected.

This week’s performance positions Bitcoin well for a potential push to new heights, though resistance around this key level may lead to temporary consolidation before the next significant move.