The leading cryptocurrency is fighting to maintain its position, even though it's not always smooth sailing. Currently, BTC is out in front, slightly simplifying the task of holding higher ground.

On Monday, May 19, Bitcoin climbed above $107,000 for the first time since late January 2025, showing positive momentum driven by growing global liquidity. However, the rally was short-lived. BTC later traded around $102,905, having set a new local high without managing to consolidate there.

The recent surge in the crypto market triggered over $652 million in liquidations on futures contracts, with long position holders suffering the biggest losses across most assets. As of now, Bitcoin's dominance stands at 63.89%.

BTC Has Upside Potential

Last week was marked by consolidation and uncertainty for BTC, despite several positive factors for the crypto market. The coin moved sideways, briefly dipping to $103,186, before regaining its leadership.

Throughout the week, BTC traded within a tight range of $100,718 to $105,819, signaling a phase of accumulation or redistribution. Bitcoin rebounded after news of a trade agreement between the U.S. and Saudi Arabia. Still, it failed to break above the $105,000–$105,500 resistance range. On Thursday, May 15, BTC rose 0.25% to $103,763, later supported by Eric Trump's announcement of plans to accumulate BTC and launch a mining company, American Bitcoin.

Support has formed around the psychologically significant $100,000 mark, while the critical level is $98,500. A break below that could trigger a deeper correction toward $95,000. "The market ignoring positive macro signals is a warning sign—it could indicate that large players are taking profits on long positions," analysts caution. Nonetheless, long-term prospects remain positive due to support for the crypto sector from the administration of U.S. President Donald Trump.

Macro Events in Focus This Week

This week, traders will closely watch key economic reports that could influence major stock indices and the crypto market. Most notably, U.S. labor market data, including initial jobless claims and total continuing claims, is due Thursday, May 22. Forecasts suggest 232,000 new claims, indicating labor market stability.

Such data could strengthen the dollar if it reinforces expectations of tighter Fed policy. Purchasing managers' indices (PMIs) for manufacturing, services, and the S&P Global composite index will also be released. Strong numbers signal economic recovery and support the rally in digital assets.

Despite ongoing uncertainty, BTC retains growth potential—especially amid supportive fundamentals such as reduced trade tensions between top economies, easing inflation, and a potential shift in Fed monetary policy.

Bitcoin Aims Higher

The crypto market has held its ground amid a positive macro backdrop, but further gains require new catalysts to kickstart a fresh bullish cycle.

Last week, BTC remained between $101,000 and $105,000, attempting to break higher but failing to consolidate above those levels. Nevertheless, sentiment remains positive. Experts believe BTC will likely stay in this range in the coming days. Bitcoin could break and hold above $105,000 if the optimistic scenario plays out.

The main growth driver remains macroeconomic conditions. Investors welcomed the news that the U.S. and China agreed to cut export tariffs by 115% over 90 days. Trump also announced a tariff deal with the U.K. Market participants hope these developments mark the beginning of the end for the global trade war, which has strained logistics and global economic growth.

However, if the U.S. adopts a harsher stance on China, BTC could fall back to $100,000. Analysts say any signs from Washington of further easing in U.S.–China trade tensions will boost risk appetite and support crypto.

According to experts, Bitcoin retains its chances of a breakthrough without a new external shock. However, maintaining the high level of BTC remains in question. The trajectory of the flagship asset remains sensitive to news about trade negotiations and expectations of the June Fed meeting.