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Analyst: The recent rise in Bitcoin was driven by favorable trade news, but a pullback may occur in the short term

ChainCatcher news, according to The Block, Bitcoin is currently about 4.5% lower than its historical high of $108,786 in January. Vincent Liu, Chief Information Officer of Kronos Research, stated: "Bitcoin is currently hovering near its historical high, with strong technical momentum supporting its break above the 50-day and 200-day moving averages. The continuous increase of institutional investors and the optimistic outlook for 2025 indicate that Bitcoin is likely to set a new historical high."However, another analyst pointed out that Bitcoin's Relative Strength Index (RSI) indicates that the cryptocurrency is in the "overbought" zone. Rachael Lucas, an analyst at BTC Markets, said: "This does not necessarily indicate that the market will reverse immediately, but it does increase the likelihood of a cooling off or consolidation in the short term. A retest and consolidation above the key psychological level of $100,000 would be a healthy development and could lay the groundwork for further increases."Min Jung, a research analyst at Presto, stated: "The recent rise in the cryptocurrency market has been driven by renewed optimism regarding the China-U.S. trade negotiations. With Bitcoin's dominance reaching levels seen before the 2021 bull market, we are now experiencing a typical rotation—capital is starting to flow into altcoins."Presto analysts added that the likelihood of Bitcoin breaking above its previous historical high may depend on how trade negotiations develop, while other escalating geopolitical tensions remain a key variable.
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