Bitcoin Aims for $90K Resistance as Market Optimism Grows
Bitcoin has recently surpassed $88,000, capitalizing on favorable market conditions stemming from potential easing of US trade tariffs. The $90,000 resistance mark is closely monitored as historical trends indicate strong performance for Bitcoin in April, though significant sell-side liquidity may impact price movements.
Bitcoin’s price surged past $88,000 following the market opening on March 25, as it responded positively to US trade policies. The increase was accompanied by a broader optimism in US stocks, fueled by hints from President Donald Trump about easing trade tariffs, which are set to take effect on April 2. This positive sentiment was crucial in stopping the downturn experienced in risk assets during recent weeks.
Trading firm QCP Capital highlighted that Tuesday saw one of the strongest market sessions this year, with Trump’s comments suggesting possible exemptions for trading partners. This relief reduced market anxiety, leading some, including JPMorgan, to believe the worst of the equity market decline had passed. Historically, the second quarter, particularly April, has shown a strong performance for risk assets, including Bitcoin.
Data from CoinGlass indicates that Bitcoin typically delivers solid returns in March and April, averaging just under 13% over the past eleven years. Consequently, market participants remain optimistic about Bitcoin’s performance this April due to historical trends.
Traders are closely monitoring the $90,000 price mark, viewed as a significant resistance level. Daan Crypto Trades, a well-known trader, expressed optimism about Bitcoin’s ability to maintain its position as it approaches this threshold, suggesting that a successful breach might lead to new price highs. Counteracting this momentum is the substantial sell-side liquidity positioned just below $90,000.
Keith Alan, co-founder of Material Indicators, pointed out that a trader nicknamed “Spoofy the Whale” is influencing Bitcoin’s price dynamics, potentially restraining it near $87,500. Alan emphasized that a key level to achieve is the yearly open above $93,000; failing to do so could result in a retracement to lower price points. It is important to note that this article does not provide investment advice, and all trading activities carry inherent risks that warrant thorough individual research.
In summary, Bitcoin’s recent surge towards $90,000 is supported by favorable market conditions, including anticipated easing of trade tariffs. Historical data suggests April is a typically strong month for Bitcoin prices, fueling optimism among traders. However, substantial resistance exists at the $90,000 mark due to seller liquidity linked to specific market participants. Investors are advised to exercise caution and conduct their research as they navigate price fluctuations.
Original Source: cointelegraph.com
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