Key Points
Bitcoin (CRYPTO: BTC) has been picking up steam in recent weeks. It's back up to where it was around a few months ago, and it may not be long before it hits the $100,000 mark again -- the last time it breached that was in early February. It only needs to rise another 15% to hit a new all-time high. And after a recent bullish development, it may only be a matter of time before that happens.
Bitcoin makes a big crossover
Crypto investors often look at charts to uncover signs that Bitcoin may be heading higher, and there could be a glaring one right now. The digital currency has been taking off again, and entering trading on Monday, it hit highs north of $95,000. That puts it back up to around the levels it was at in February, before concerns about tariffs and the economy weighed on its valuation.
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The recent trend has been so strong that Bitcoin's 20-day moving average (MA) has crossed above its longer 50-day MA. That's a positive signal to the market that optimism is picking up. And for technical analysts who track charts and look for these types of crossovers, it can be a catalyst that fuels Bitcoin's valuation even higher in the weeks and months ahead.
Investors should remain wary of volatility
This recent crossover is a promising development for the crypto world, but it also comes at a time when the market appears to be less concerned about tariffs, with President Trump announcing a pause on most global tariffs. But investors only need to look back to early April, when Bitcoin fell to less than $75,000 due to fears relating to the state of the global economy, as a reminder as to how quickly its progress can get derailed.
On a year-to-date basis, Bitcoin is still only up by just a few percentage points. That's a far cry from last year, when its value rose by 119%. Enthusiasm was high entering 2025 on the hope that President Trump would enact crypto-friendly policies that would help Bitcoin and other digital currencies soar in value.
And while there may be potential catalysts ahead, such as setting up a reserve that includes Bitcoin, there is also a growing risk that a recession could be coming this year. So while investors may want to believe that Bitcoin can be a safe investment to hold amid such turmoil and even be a "digital gold," that hasn't been the case this year . A downturn in the economy could lead to a decline in Bitcoin's value.
At the very least, investors should continue to brace for, and expect, volatility.
Can Bitcoin be a good buy right now?
Bitcoin could very well get back to its record high of around $109,000 later this year if investor sentiment is positive and the digital currency can build off its recent rally. However, in the longer run, a lot still hinges on the hopes for the overall economy. If investors become concerned that tariffs aren't going away and that a recession is inevitable, it could cripple Bitcoin's valuation, regardless of what chart patterns show or suggest. Bitcoin is by no means a lock to soar in value this year.
If you have a high risk tolerance, then Bitcoin could be worth adding to your portfolio, but I wouldn't suggest taking a large position in it due to its volatility. And to at least reduce some of your overall risk, you may want to consider surrounding it with safe, blue chip investments and assets to ensure you aren't at the mercy of how the crypto market performs this year.
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