Bitcoin surged past the $100,000 mark over the weekend, trading just under $104,000 late Sunday after briefly touching $105,000 earlier in the day. The world’s largest cryptocurrency has gained strong momentum in recent sessions and now sits only 4.5% below its all-time high of $108,786 reached in January. Analysts say the bullish trend may continue, with the possibility of a new record in sight, though they also caution that a short-term correction could occur as market indicators begin to show signs of overheating.

According to The Block’s bitcoin price data, the token held steady within the past 24 hours, down just 0.12% to $103,926. Kronos Research CIO Vincent Liu noted that Bitcoin remains technically strong, trading above both its 50- and 200-day moving averages, supported by increasing institutional adoption and a favorable macroeconomic outlook for 2025. However, analysts point out that the Relative Strength Index (RSI) is now in “overbought” territory, suggesting the potential for a period of consolidation. BTC Markets analyst Rachael Lucas stated that a short-term pullback or sideways movement would be a healthy development, especially if Bitcoin can sustain itself above the key $100,000 psychological level.

The latest rally is being fueled in part by renewed optimism surrounding trade relations between the U.S. and China. Talks in Switzerland concluded over the weekend with both sides reportedly reaching a major consensus. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are expected to announce more details Monday, outlining what they describe as “substantial progress.” Analysts believe that the easing of trade tensions — particularly fears of an extended tariff war — is helping to lift sentiment across global markets, including cryptocurrencies.

Min Jung, an analyst at Presto Research, said Bitcoin dominance is returning to levels not seen since before the 2021 bull market, with capital slowly rotating into altcoins as well. The analyst emphasized that further upside for Bitcoin largely hinges on continued positive developments in U.S.-China relations and the broader macro landscape. Meanwhile, inflows into spot bitcoin ETFs and strategic accumulation by major corporate treasuries — such as that of Strategy — are also seen as critical drivers of price stability and further gains.

As markets brace for key macro events such as the U.S. CPI release on May 13, volatility is expected to remain elevated. Investors are advised to manage risk carefully and diversify their portfolios amid the fast-moving environment. While Bitcoin’s outlook appears increasingly bullish, the path to new all-time highs may still be shaped by policy decisions and global economic uncertainty.