Is a Colossal Bitcoin Price Surge to $90K Imminent as 10-Week Downtrend Shatters?

Is Bitcoin poised for a colossal comeback? After enduring a ten-week downtrend, the leading cryptocurrency is showing compelling signs of a bullish reversal. Could we witness a spectacular surge to $90,000 soon? Let’s dive into the latest market analysis to uncover the factors driving this potential shift and what it means for investors.
Bitcoin Price on the Cusp of a Major Breakout
Bitcoin (BTC) has kicked off Q2 with impressive momentum, surging by 5.53% and reaching an intraday high of $87,333 on April 2nd. This rally is particularly significant as it signals a potential end to a persistent ten-week downtrend that began when Bitcoin hit $110,000 on January 20th. A sustained break above this crucial downtrend line could pave the way for continued bullish momentum, potentially propelling the Bitcoin price to new all-time highs.
As you can see in the chart below, the technical indicators are hinting at a significant shift in market sentiment:
Bitcoin 1-day chart. Source: Crypto News Insights/TradingView
Spot Traders Fueling the Bitcoin Price Rally
Throughout March, a fascinating divergence emerged between spot traders on major exchanges Binance and Coinbase. Binance traders exhibited selling pressure, while Coinbase demonstrated strong spot bids around the $80,000 level. This contrasting activity contributed to the sideways price action observed for much of March.
However, April has brought a unified front. Over the past three days, spot traders across major exchanges have collectively turned bullish. Data from aggr.trade reveals a notable surge in spot bids on both Coinbase and Binance, indicating strong buying pressure that is driving positive momentum for the BTC price.
The buying activity is particularly robust on Coinbase, with spot bids escalating to as high as $7.98 million in recent hours. Adding to this insight, crypto market analyst Dom highlighted a potential tapering off of selling pressure from Binance, stating:
“BTC has been able to breathe ever since the Binance selling tapered off. We are even seeing some spot buying from them for the first time in over a week.”
Binance, Coinbase spot buyers data. Source: Aggr.trade
Key Resistance Flips to Support: A Bullish Signal for Bitcoin Market Analysis
From a technical analysis perspective, Bitcoin has achieved a crucial milestone by flipping the $84,000 to $85,000 resistance range into a new support level. This is a significant bullish indicator. Furthermore, Bitcoin has established a bullish position above the key 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs). These moving averages are often used to gauge market trends, and Bitcoin’s position above them suggests strengthening bullish momentum.
Bitcoin 4-hour chart. Source: Crypto News Insights/TradingView
However, external liquidity levels around $87,700 and $88,700, representing previous highs, might present immediate challenges for a breakout. A period of consolidation within the green box illustrated in the chart could be beneficial, potentially building momentum for a retest of the $90,000 level – a price point not seen since March 7th.
Conversely, an immediate correction back to the $84,000-$85,000 support zone could dampen bullish enthusiasm and potentially empower short sellers to seize control. A bearish invalidation could be triggered if the Bitcoin price closes below $85,000 in the coming days.
Navigating Market Volatility and the Road to $90K BTC
The markets are bracing for potential volatility due to President Trump’s “Liberation Day” tariffs. Bitcoin’s price is expected to react to announcements from today’s White House press conference at 4 pm Eastern Time. These external factors add an element of uncertainty to the immediate crypto market outlook.
Despite potential short-term fluctuations, the underlying bullish signals for Bitcoin are compelling. The break from the 10-week downtrend, coupled with strong spot buying and positive technical indicators, suggests a solid foundation for further upward movement. Could $90,000 be the next major milestone for Bitcoin price? Market watchers are keenly observing these developments.
Renowned crypto analyst Arthur Hayes has even suggested that Bitcoin could reach $250,000 in 2025 if the Federal Reserve shifts to Quantitative Easing (QE), highlighting the long-term bullish potential of Bitcoin.
Key Takeaways:
- Bullish Breakout: Bitcoin is attempting to break free from a 10-week downtrend, signaling a potential shift in market structure.
- Spot Buying Surge: Increased spot buying activity on Coinbase and Binance is driving the current rally.
- Resistance Turned Support: The $84K-$85K range has flipped from resistance to support, a positive technical development.
- $90K Target in Sight?: Consolidation above $85K could fuel a retest of the $90,000 level.
- Volatility Ahead: External factors like US tariffs could introduce short-term market volatility.
Actionable Insights for Investors:
- Monitor Price Action: Closely watch Bitcoin’s price movement around the $87,700-$88,700 resistance range and the $85,000 support level.
- Stay Informed: Keep abreast of macroeconomic events and announcements that could impact the crypto market.
- Manage Risk: Remember that cryptocurrency investments are inherently risky. Conduct thorough research and consider your risk tolerance before making any decisions.
In Conclusion:
Bitcoin’s recent market activity presents a hopeful outlook for bulls. The potential break from the long-term downtrend and the resurgence of buying interest suggest that the Bitcoin price could indeed be gearing up for a significant move higher. While market volatility remains a factor, the underlying bullish signals are hard to ignore. The journey to $90K and beyond may be underway. Stay tuned for further updates as the crypto market unfolds.
Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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