Bitcoin Surpasses $100,000 Again, Analyst Apologizes for Underestimating Upside Target, Adjusted to $120,000

Bitcoin Price Surges After Trump’s Tariff Announcement

In the days following President Trump’s announcement of tariffs in early April, the price of Bitcoin plummeted to $75,000 but subsequently rose by 33% over the following weeks, currently recovering to over $100,000. The tariffs initially triggered a wave of panic in the market, yet traditional financial institutions have simultaneously joined the cryptocurrency trend. Geoff Kendrick from Standard Chartered Bank stated that capital flow and direction are key drivers of the Bitcoin investment market.

Bitcoin Price Exhibits Zigzag Patterns

The price of Bitcoin has returned to six figures, continuing its zigzag trend, which most analysts had anticipated. The zigzag indicator is a fundamental tool used by analysts to identify when a security’s trend is reversing. Determining support and resistance levels aids in recognizing significant price changes while filtering out short-term fluctuations and eliminating the noise of daily market conditions.

Is Trump’s Speech an Indicator for Bitcoin Prices?

Looking back, Bitcoin first broke the $100,000 mark last December, rebounding strongly after Trump’s election victory in November. Just hours before his inauguration on January 20, the price surged to over $109,000, with bulls wildly raising their upward price targets. However, the situation took a sharp downturn shortly thereafter, and in the following weeks, the price of Bitcoin continued to decline. After Trump announced punitive tariffs on U.S. trading partners in early April, panic ensued, and Bitcoin’s price dropped to $75,000. Many alternative coins suffered even more severe losses, with SOL and ETH dropping over 60%. However, after that, prices quickly reversed and traditional markets began to embrace cryptocurrencies, shedding the impact of the tariffs. Similar to Bitcoin’s trajectory, the Nasdaq and S&P 500 indices are currently higher than their levels before Trump’s tariff alert, suggesting that the recent surge past $100,000 may have stemmed from trade agreements between the U.S. and the U.K., with Trump’s statements and policies becoming apparent indicators of Bitcoin price fluctuations.

Analysts Believe Capital Flow and Direction Are Indicators

In a report on Thursday, Geoff Kendrick from Standard Chartered Bank wrote that Bitcoin’s dominant position in the market has changed again, and everything now relates to capital flow and its direction. There are various forms of circulation. Kendrick noted the recent reports of a surge in capital inflows into spot Bitcoin ETFs, which are sometimes overlooked since a significant portion of the funds is offset by exchanges (hedge funds shorting Bitcoin futures and gaining minimal returns). Kendrick believes that during the recent round of capital inflows, the underlying trading volume did not show a noteworthy increase, indicating that real capital is flowing into ETFs. The 13F institutional reports cover not only BTC ETF holdings but also ownership of major Bitcoin institutional holder Strategy (MSTR). Kendrick concluded by saying, “I’m afraid my target of $120,000 for Q2 may be too low.”

Market Observation Only, Not Investment Advice

Risk Warning: Investment in cryptocurrencies carries a high level of risk, with prices potentially experiencing significant volatility. You may lose all your principal. Please assess risks carefully.

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