Bitcoin’s price has failed to surpass the $85,000 resistance level as there are no bullish market catalysts.
The flagship cryptocurrency, which has been trading since April 13, is currently stuck in a tight range between $83,000 and $85,000. This price movement has been impacted by macroeconomic factors.
Bitcoin was gaining a bit over 4% per week at the time of writing. Its market capitalization hovered just around $1.6 trillion.
What is holding Bitcoin back?
Click here to copy the link
Investors have been prompted to take a cautious approach this week by several forces that are bearish.
The Crypto Fear and Greed Index hovers near the lower edge of the Fear Zone at 30 as of the time of publication.
The renewed tensions between China and the US are a key factor in the mood.
The markets turned cautious on Wednesday after President Trump imposed new restrictions on Nvidia chip exports from China.
This move roiled global stocks and raised fears about a further escalation of trade tariffs. The tech sector, as well as other risky assets fell.
Reports have surfaced that Chinese officials may liquidate confiscated Bitcoin using offshore exchanges, adding to the unease.
Unconfirmed reports like these tend to scare investors, and they have put further pressure on the fragile sentiment surrounding crypto.
The US Federal Reserve chair Jerome Powell shifted his stance to a more aggressive one than the markets expected.
Powell said in his speech on April 16, that the Fed was not in a hurry to reduce interest rates. This reinforced a wait-and-see approach, amid increasing economic uncertainty.
After he warned of the inflationary risk posed by Trump’s new tariffs, his remarks further dampened investors sentiment.
Powell said that “the scale of tariff increases was significantly larger than expected” and would likely result in “higher inflation, slower growth and higher unemployment.”
What is next for Bitcoin
Click here to copy the link
Markets have little reason to return to risk mode, as restrictive monetary policies are likely to remain in place for a longer period of time.
This means that Bitcoin will continue to be suppressed around the key resistance levels as traders consider the economic forecast before taking more risk.
Bitcoin needs to turn the resistance of $86,000 into support in order for it to regain its bullish momentum and reach $90,000.
Market pundits believe that BTC must first regain the 200-day EMA of $87,740. This is the level which it has lost since March 9, 2024.
Failure to recover key levels on the downside opens up the possibility of more pain. The bears will likely defend $86,000 aggressively and push BTC below $80,000.
Michael van de Poppe of MN Capital believes that losing this support will trigger a further decline. Prices are likely to fall to the range $74,400 to $76600, which is the last line before the deeper correction begins.
#Bitcoin still remains in its range. As long as the price stays above $80.000, we should be able to see further gains on this coin.
The so-called Trump pump may be erased by further weakness.
Analyst James Check believes that the bottom of Bitcoin is around $65,000, based on average costs for investors who are active and an important long-term support zone.
It reflects the cost of BTC for most active market participants. It is therefore a crucial long-term support area.
Bulls must defend $75,000. “If not, then we will be heading back to chop and $65k is the flag on that sea of sand,” he said.
The bullish rally could be restarted by a drop of $65k
Click here to copy the link
Some believe that a Bitcoin correction towards the $60,000 mark could reset the sentiment, and ignite the next upward leg.
Altstein shared his contrarian opinion, suggesting that the dip in BTC’s price to $69K – $65, 000 could be a precursor of a new bull phase, which may eventually push BTC up to $150,000.
BTC/USD Weekly Chart Source: Altstein
The $150K goal may seem ambitious but the concept of a correction that is healthy before a continuation fits with the broader cycles.
Bitcoin’s history shows that it has frequently revisited its key costs-basis during times of macrouncertainty before experiencing a strong recovery.
This scenario is also in line with the underlying dynamics of supply that are currently forming across the entire market.
CryptoQuant data shows Bitcoin exchange reserves have been falling for years.
In the past, these conditions often preceded significant price increases, particularly when coupled with rising demand and a change in investor sentiment.
If Bitcoin does not experience a further correction, and it holds its current levels of support, then the recent break above the trendline 2025 could be gaining traction.
Crypto Caesar, a pseudonymous analysis, suggested in a post on X that a close over $88,000 could be the key to a possible move towards $90,000.
Bitcoin has attempted to break free several times. Finally, $BTC broke out. It is important that bitcoin breaks the $88K mark.
This site is for entertainment only. Click here to read more
