As trading opened on Wall Street on March 24, Bitcoin (BTC) approached the $90,000 mark, though analysis indicated “conflicting signs and signals.”
BTC/USD 1-hour chart. Image via TradingView
BTC Price Sees Daily Gains of Nearly 3% Amid Risk-Asset Recovery
According to data from market analysis platforms, BTC/USD peaked at $88,772 on Bitstamp, marking its highest point since March 7.
Following a nearly month-long period of sell pressure, Bitcoin opened the week on an upward trajectory alongside stocks. The S&P 500 and Nasdaq Composite were up 1.6% and 2%, respectively, at the time of reporting.
A trading resource noted that this increase was a positive response to news of the U.S. government lessening the impact of new trade tariffs set to take effect on April 2.
Reports suggested that “sector-specific tariffs” would be implemented rather than blanket measures.
“The S&P 500 has risen by 75 points following the announcement,” it stated.
S&P 500 4-hour chart. Image via TradingView
The cryptocurrency market had already gained momentum from speculation that the U.S. might utilize profits from its gold reserves to acquire BTC.
“Realizing gains from [these holdings] could provide a budget-neutral method to acquire more Bitcoin,” commented an executive involved in the President’s Council of Advisers on Digital Assets during a recent podcast.
An analyst provided insight on March 24, indicating that this news did not go unnoticed.
Although the increase in Bitcoin’s price was modest, he mentioned in a recent post that “the consideration of using Gold Reserves to buy Bitcoin certainly sparked some speculation.”
“With gold at all-time highs and BTC in a correction, this might be a prime opportunity to sell some gold for Bitcoin,” he noted.
XAU/USD 1-day chart. Image via TradingView
BTC Requires Key Support Reacquisition to Prevent New Lows
Continuing, the analyst outlined two critical criteria for continued upward momentum in BTC pricing.
Related: RSI Breaks 4-Month Downtrend: 5 Key Points About Bitcoin This Week
The 21-day simple moving average (SMA), currently at $84,674, along with the yearly open around $93,300, need to be regained as support levels.
BTC/USD 1-day chart with 21SMA. Image via TradingView
“With various conflicting signals, how can we discern if Bitcoin is set to return to its all-time high territory or if we are facing a potential bull trap? The answer lies in knowing your validation and invalidation levels,” he elucidated.
In particular, the yearly open is crucial, with the analyst asserting that until it is reclaimed, “the chances of a price retest at lower levels increase.”
“When that occurs, I’ll be looking to purchase those dips as buying resumes,” he concluded.
This article does not constitute investment advice or recommendations. All investment and trading activities carry risk, and it is advisable for readers to perform their own research before making decisions.