Will Bitcoin's All-Time High Be Surpassed? What Do Analysts Think? Here Are the Details

Bitcoin (BTC), continued its rise late on Sunday, trading just below $104,000, influenced by macroeconomic optimism and increasing institutional demand. The world's largest cryptocurrency is currently close to its all-time high, and analysts consider a new record to be reasonable in the short term.

Bitcoin briefly rose above $105,000 in the early hours of the day, before trading at $103,926 with a marginal decline of 0.12% over the last 24 hours. The cryptocurrency is currently just 4.5% below its previous all-time high of $108,786 reached in January.

Kronos Research CIO Vincent Liu said, "Bitcoin is trading close to all-time highs, supported by strong technical momentum above the 50 and 200-day moving averages." He added, "Increasing institutional adoption and a positive outlook for 2025 indicate a reasonable path towards another ATH."

Despite the rally, some caution signs have emerged. Analysts indicate that Bitcoin's Relative Strength Index has entered the (RSI) overbought territory, which is typically a precursor to price corrections.

"BTC Markets analyst Rachael Lucas stated, "This does not necessarily indicate a sudden reversal, but it increases the likelihood of a short-term cooldown or sideways movement. A retest and consolidation above the key psychological level of 100,000 dollars would be a healthy development and could provide a foundation for further rise."

The ongoing rise in Bitcoin's price is largely attributed to renewed optimism in US-China trade relations. According to Reuters, diplomatic talks held in Switzerland on Sunday ended with both sides claiming to have reached a significant agreement.

Today, it is expected that U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will announce significant progress in the negotiations.

Presto Research analyst Min Jung stated, "The recent rally in the crypto market was driven by renewed optimism regarding the US-China trade negotiations. While Bitcoin dominance has reached levels last seen before the 2021 bull market, we are witnessing a classic rotation as capital begins to flow into altcoins."

In addition to macro factors, continuous inflows into spot Bitcoin ETFs and the ongoing accumulation of institutional treasuries are helping to sustain the upward momentum.

Liu from Kronos said, "Institutional treasures like Strategy continue to strengthen institutional confidence by accumulating BTC." He added, "As macro events like the US CPI announcement on May 13 approach, investors should remain vigilant, manage risk wisely, and maintain diversified strategies to navigate this high volatility environment."

With a number of tailwinds ranging from favorable technical indicators to improving geopolitical sentiment, many investors believe that Bitcoin is on the verge of reaching an all-time high soon. However, experts warn that volatility is the only constant in this market.