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Bitcoin extended its bullish momentum by trading around the $104,000 mark on Sunday night.
Analysts said bitcoin could reach a new all-time high in the near future, depending on further macro developments.

Bitcoin
BTC +0.99%
continued its upward momentum, trading around $104,000 as of late Sunday night after crossing the key $100,000 level for the first time in months.

Analysts suggested that bitcoin may reach a new record high, though a short-term price correction also remains possible.

According to The Block's bitcoin price page, the world's largest cryptocurrency remained relatively steady in the past 24 hours, down 0.12% at $103,926. Earlier in the day, bitcoin briefly rose above the $105,000 level.

Bitcoin is currently about 4.5% below its January all-time high of $108,786.

"Bitcoin hovers near all-time highs, backed by strong technical momentum trading above its 50 and 200-day moving averages," said Kronos Research CIO Vincent Liu. "Rising institutional adoption and a favorable 2025 outlook point to a plausible path toward another ATH."

However, bitcoin's relative strength index (RSI) indicates that the cryptocurrency is in the "overbought" territory, analysts pointed out.

"This doesn’t necessarily signal an immediate reversal, but it does raise the likelihood of some short-term cooling or sideways movement," BTC Markets Analyst Rachael Lucas said. "A retest and consolidation above the key psychological level of $100,000 would be a healthy development and could provide a base for further upside."

The continued rally of the world's largest cryptocurrency was mainly driven by external macro headlines, especially from renewed optimism over U.S.-China negotiations, according to analysts. Fears of a protracted trade war sparked by strict U.S. tariffs were a major factor halting bitcoin's last bull run.

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Trade discussions between the two major economies concluded positively in Switzerland on Sunday, where Chinese officials said both sides have reached an "important consensus," Reuters reported.

On Monday, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to announce the details of "substantial progress" made during the trade discussions with China, according to the report.

"The recent rally across the crypto market has been driven by renewed optimism over U.S.-China trade negotiations," Presto Research Analyst Min Jung said. "We're now seeing a classic rotation as Bitcoin dominance reaches levels last seen before the 2021 bull market — with capital beginning to flow into altcoins."

The Presto analyst added that bitcoin's possibility of breaking its previous all-time high likely depends on how the trade discussions evolve, with other rising geopolitical tensions remaining a key variable.

On top of macroeconomic conditions, persistent inflows into spot bitcoin exchange-traded funds and bitcoin accumulation by major corporate treasuries such as that of Strategy, remain "critical" to maintaining upward momentum, said Liu of Kronos.

"As macro events like the upcoming U.S. CPI release on May 13 loom, investors must stay vigilant, manage risk wisely, and maintain diversified strategies to navigate this high-volatility landscape," Liu added.