Analyst: Bitcoin's recent rise is driven by positive trade news and is expected to reach a new high, but the RSI indicator is already in the overbought stage

According to BlockBeats, on May 12th, Bitcoin is currently about 4.5% lower than its historical high of $108786 in January. Vincent Liu, Chief Information Officer of Kronos Research, said, "Bitcoin is currently hovering around historical highs, supported by strong technical momentum to break through its 50 day and 200 day moving averages. The increasing number of institutional investors and optimistic expectations for the outlook in 2025 indicate that Bitcoin is poised to reach new historical highs However, another analyst pointed out that Bitcoin's Relative Strength Index (RSI) indicates that the cryptocurrency is in the "overbought" zone. BTC Markets analyst Rachael Lucas said, "This does not necessarily indicate an immediate reversal in the market, but it does increase the possibility of a cooling or sideways consolidation in the short term. Retesting and consolidating above the key psychological barrier of $100000 would be a healthy development trend and could lay the foundation for further gains Presto research analyst Min Jung said, "The recent rise in the cryptocurrency market is driven by the market's renewed optimism about the US China trade negotiations. With Bitcoin's dominance reaching pre bull market levels in 2021, we are now experiencing a typical cycle - capital is beginning to flow into altcoins Presto analysts added that the possibility of Bitcoin breaking through its previous historical highs may depend on how trade negotiations develop, while other escalating geopolitical tensions remain a key variable.