Bitcoin Price Analysis: BTC Registers Marginal Decline As Bulls Test Key Resistance Level
Bitcoin (BTC) registered a marginal decline and is trading just under $85,000 as it tests a key resistance level after recovering from a decline that saw the price drop to a low of $74,393 last week. The flagship cryptocurrency is trading within a narrow range, indicating that its price structure is stabilizing.
BTC is marginally down during the ongoing session, trading around $84,650. BTC’s recent recovery to $85,000 comes amid falling trading volumes, market uncertainty, and inflation concerns thanks to President Trump’s tariff policies.
Bitcoin’s Brief Decoupling
April 4 saw a historic development as Bitcoin seemed ready to decouple from its link to tech stocks. Investors watched as the Nasdaq plunged 5% as Bitcoin held its price level and moved marginally higher, with crypto experts hailing the flagship cryptocurrency and announcing that the long-awaited decoupling had arrived. However, the correlation was back within days, indicating that Bitcoin is still tied to the tech-driven mood of the market. Bitcoin and the traditional markets have endured a difficult period since President Trump announced sweeping global tariffs. BTC, along with the Nasdaq and S&P 500 registered notable declines. Meanwhile, gold surged, reminding markets of its safe-haven status.
However, not everyone is writing off Bitcoin. BlackRock CEO Larry Fink said that if the US cannot rein in its deficits, it could erode the US Dollar’s dominance and allow digital assets like BTC to play a key role in global markets. However, the BlackRock CEO’s view is a long-term bet, with analysts stating that Gold is king in the short term.
Strategy, Bitcoin ETFs Key To Stabilizing Bitcoin
According to Bloomberg ETF analyst Eric Balchunas, Bitcoin’s relative stability despite widespread macroeconomic uncertainty is likely due to spot Bitcoin ETF holders and Michael Saylor’s Strategy continuing its aggressive purchase of the asset.
“The ETFs and Saylor have been buying up all ‘dumps’ from the tourists, FTX refugees, GBTC discounters, legal unlocks, govt confiscations and Lord knows who else.”
Balchunas noted that Bitcoin ETFs have attracted over $131 million over the past 30 days and are up $2.4 billion since January 1.
“Its owners are more stable. Bitcoin ETF investors have “much stronger hands than most people think, and this should increase the stability and lower Bitcoin’s volatility and correlation in the long term.”
Saylor’s Strategy made its latest Bitcoin purchase on April 14, when it scooped up 3,459 BTC for $285 million at an average price of $82,618 per coin.
Bitcoin Recovers Despite Powell’s Dire Warning
Federal Reserve Chair Jerome Powell warned that the level of tariffs announced by President Trump has been significantly higher than anticipated and that such aggressive trade policies will result in higher inflation and slower growth. Powell’s warning triggered a dramatic price drop, with BTC dropping to a low of around $83,000. However, the flagship cryptocurrency rebounded from these levels to inch closer to the $85,000 mark. Dylan Bane, an analyst at crypto data firm Messari, stated,
“Bitcoin dropped roughly 2%, from $85,300 to $83,300, within 30 minutes of Fed Chair Jerome Powell’s 1:30 PM EST remarks. Equities followed a similar pattern. The Dow Jones, S&P 500, and Nasdaq fell between 1.5% and 4% over the course of the day, suggesting a broad-based risk-off reaction to Powell’s comments.”
Powell issued a clear warning about President Trump’s tariffs and their impact on the economy while speaking at the Economic Club of Chicago.
“The new administration is in the process of implementing substantial policy changes. We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension. That mandate is to maintain price stability and maximum sustainable employment, a feat that will prove increasingly difficult in a protectionist environment.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is marginally down during the ongoing session as it struggles to break past the resistance sitting around $85,000-$86,000. Analysts have noted that the flagship cryptocurrency must push above this level to continue its recent relief rally, which has seen it rebound from a low of $74,000 to reclaim $80,000. BTC has traded in a narrow range since the weekend after buyers lost momentum. However, it has not ceded ground to the bears and maintained its position above $80,000.
Analysts are still bullish about BTC, with one stating it is on the verge of its next major breakout, which could send the price to $137,000, a new all-time high. The analyst pointed out Bitcoin’s Relative Strength Index, which recently broke above a long-standing downward trendline. Such breakouts have historically preceded massive rallies. The analyst also highlighted the bullish crossover in the Linear Moving Average Convergence Divergence, which is flipping from red to green and crossing the signal line, indicating a positive trend.
BTC registered a substantial increase on Wednesday as it rebounded after Tuesday’s drop, rising over 8% to reclaim $80,000 and settle at $82,600. However, the rally lost momentum on Thursday, dropping almost 4% to slip below $80,000 and settle at $79,592. Buyers returned to the market on Friday as BTC rose nearly 5% to reclaim $80,000, move past the 20-day SMA, and settle at $83,370. The price continued to push higher on Saturday, rising over 2% to cross the 50-day SMA and settle at $85,378. Despite the positive momentum, BTC fell back in the red on Sunday, dropping almost 2%, slipping below the 50-day SMA, and ending the weekend at $83,776.
Source: TradingView
The current week started positively as BTC reached an intraday high of $85,861 before settling at $84,619, ultimately registering an increase of 1.01%. However, price action turned bearish on Tuesday as BTC fell over 1%, slipping below the 50-day SMA and settling at $83,701, but not before reaching an intraday high of $86,533. Price action turned positive on Wednesday as BTC registered a marginal increase and settled at $84,031. Bullish sentiment intensified on Thursday as the price rose 1.11% to cross the 50-day SMA and settle at $84,962. The current session sees BTC marginally down as it tests the resistance at $85,000. A break above this level could see BTC jump to $90,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
Investment Disclaimer
