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Bitcoin Reclaims $97K Amid US-China Trade Talks: Is $100K Next?
May 7, 2025
Bitcoin has reclaimed the $97K mark as US-China trade talks revive investor sentiment. Will BTC hit $100K next?
The crypto market has momentarily bounced back, with the US and China ready to renegotiate trade deals in Switzerland this weekend. This boosted Bitcoin’s price to momentarily reclaim the $97,000 mark.
Currently, Bitcoin is trading at $96,585, recording a near 3% increase over the past 24 hours. Will this short-term recovery in Bitcoin help it reclaim the $100,000 mark?
Bitcoin Price Analysis
In the 4-hour price chart, the BTC price trend shows a bounce back with a double-bottom reversal from $93,766. With a solid baseline formed, the reversal in BTC price marks a positive turnaround.
However, the bullish recovery fails to surpass the previous swing high. With a higher price rejection and a 24-hour high formed at $97,711, the BTC price is now back near $96,500.
Nevertheless, the short-term recovery has led to a bullish crossover in the MACD and signal lines. With a positive crossover, the momentum indicator signals a heightened possibility of BTC challenging the overhead trend line.
Furthermore, the BTC price surge has reclaimed the 50-EMA line, challenging the 23.60% trend-based Fibonacci level near $97,237. Following the recent triangle breakout in mid-April, the currently formed expanding channel holds the BTC price trapped.
If the uptrend continues to challenge the overhead trend line near the 38.20% Fibonacci level at $99,384, a breakout rally is possible. The Fibonacci level sets the extended price target near $102,854 and $105,325.
On the flip side, the 50-EMA line at $94,962 remains a crucial dynamic support.
US Spot Bitcoin ETFs Witness $84M Outflow
Despite the short-term relief witnessed in the U.S. and crypto markets, institutional support for Bitcoin lags. On May 6, the total daily net outflow from U.S. spot Bitcoin ETFs stood at $85.64 million.
Notably, BlackRock remains the only ETF with positive flow on Tuesday, with an inflow of $36.73 million. Grayscale led the outflows with $89.92 million, followed by ARK and 21Shares with $16.12 million.
Franklin and VanEck ETFs recorded outflows of $8.26 million and $8.07 million, respectively. As of May 6, the total net assets held by U.S. Bitcoin spot ETFs are $111.15 billion.
MetaPlanet Adds 555 BTC
Despite the outflows in Bitcoin ETFs, MetaPlanet, a Japanese investment firm, has announced the acquisition of additional Bitcoin.
The company purchased 555 BTC, increasing its total Bitcoin holdings to 5,555 BTC with an average cost of $90,236 per BTC.
*Metaplanet Acquires Additional 555$BTC* pic.twitter.com/YbAuOlFTwn — Metaplanet Inc. (@Metaplanet_JP) May 7, 2025
Bitcoin Open Interest Surge Sparks Long Position Spike
As Bitcoin’s price surges, the derivatives market has seen a spike in bullish sentiment. According to Coinglass, the BTC open interest has surged by 2%, reaching $63.75 billion.
Furthermore, the Bitcoin funding rate remains positive at 0.0013%. As Bitcoin OI and the funding rate increase, long positions are gradually growing.
According to the Bitcoin Long-to-Short Ratio chart, long positions over the past four hours now account for 51.43%. This makes the derivatives field marginally bullish, with a long-to-short ratio of 1.0589.
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