Bitcoin price started the month on a strong note, crossing the important resistance level at $96,000 for the first time since February.
Bitcoin (BTC) jumped above $97,000, up by almost 30% from its lowest level in April. Its rally occurred as investors adopted a risk-on sentiment, with the Crypto Fear and Greed Index rising to 55.
U.S. stocks also continued their upward momentum, with the Dow Jones and Nasdaq 100 indices both jumping by over 350 points. Below are the top three reasons why Bitcoin may be on its way to $100,000, and possibly an all-time high, in May.
1. Bitcoin price’s death cross pattern failed in April
One major reason for optimism is that Bitcoin avoided forming a death cross pattern last month. A death cross occurs when the 50-day moving average crosses below the 200-day moving average — typically a bearish signal.
In April, the spread between these two averages narrowed significantly but ultimately did not cross. This mirrors what happened in September 2023, when a near-death cross preceded an 83% rally in BTC. A similar setup could signal another bullish surge.
Bitcoin has other bullish technical catalysts that may push it above $100,000 and even its all-time high. It formed a double-bottom pattern at $76,560, and has now moved above the neckline at $88,830. It has also moved above the upper side of the small bullish flag pattern shown in yellow. Therefore, all these patterns indicate further gains in May.
2. Bitcoin’s institutional demand is rising
Another potential catalyst for Bitcoin is the growing number of institutions actively purchasing the coin. A notable example is that spot Bitcoin ETFs recorded net inflows of $2.9 billion in April, bringing cumulative inflows to over $39 billion.
In addition, more companies are building and increasing their Bitcoin treasuries. Cantor Fitzgerald, Tether, and SoftBank have teamed up to create Twenty One, a company whose sole purpose is to buy Bitcoin. Other firms, such as Trump Media and GameStop, have also announced plans to acquire Bitcoin.
More companies are likely to continue buying Bitcoin as it gradually evolves into a safe-haven asset. It has outperformed stocks and other risk assets since Trump delivered his Liberation Day tariff speech.
3. Federal Reserve and Donald Trump pivot
Bitcoin is also expected to receive a boost from Donald Trump and the Federal Reserve, particularly following this week’s economic data. A report released on Tuesday showed that consumer confidence tumbled in April.
Another report revealed that the private sector created just 61,000 jobs in April, well below the median estimate of 121,000. The US economy also contracted for the first time since 2022, raising concerns about a possible recession.
These numbers suggest that both Trump and the Fed may pivot this month. Trump could begin negotiating trade deals with countries, including China. Meanwhile, the Fed may signal that it is ready to intervene by cutting interest rates.
These two actions will end the top risks facing the market this year, and push risky assets like Bitcoin higher.