Analyst: Bitcoin's recent surge has been driven by positive trade news, with the potential to hit a new all-time high, but the RSI indicator is currently in overbought territory.

BlockBeats News, May 12th, Bitcoin is currently trading around 4.5% lower than its January all-time high of $108,786. Vincent Liu, Chief Information Officer of Kronos Research, stated: "Bitcoin is currently hovering near its all-time high, with strong technical momentum supporting its break above the 50-day and 200-day moving averages. The increasing participation of institutional investors and optimistic expectations for the outlook by 2025 indicate that Bitcoin is poised to reach new historical highs."

However, another analyst pointed out that Bitcoin's Relative Strength Index (RSI) suggests the cryptocurrency is in the "overbought" territory. Rachael Lucas, BTC Markets analyst, said: "This does not necessarily predict an immediate reversal in the market, but it does increase the likelihood of a short-term cooling-off or consolidation phase. A retest and consolidation above the key psychological level of $100,000 would be a healthy development and could lay the groundwork for further upward movement."

Min Jung, a research analyst at Presto, stated: "The recent surge in the cryptocurrency market has been mainly driven by market optimism over the resumption of U.S.-China trade negotiations. With Bitcoin's dominance reaching pre-2021 bull market levels, we are currently witnessing a typical rotation as capital begins to flow into altcoins."

The Presto analyst added that the possibility of Bitcoin surpassing its previous all-time high may depend on the development of trade negotiations, while other escalating geopolitical tensions remain a key variable.