Bitcoin’s (BTC) price has kicked off Q2 with a strong surge, climbing 5.53% to reach an intraday high of $87,333 on April 2. The cryptocurrency is now breaking out of a ten-week downtrend that started on January 20, when it peaked at $110,000.
A close above the trendline could indicate sustained bullish momentum for Bitcoin in the days ahead.
Bitcoin 1-day chart. Image from TradingView
Spot traders fuel the rally
In March, spot traders on major exchanges displayed contrasting positions. Traders on one exchange were selling Bitcoin aggressively, while those on another were placing substantial bids around the $80,000 mark. This discrepancy contributed to the sideways movement in prices throughout much of March.
However, as April began, spot traders on prominent exchanges have exhibited a newfound bullishness over the last three days.
Data on spot buyers from Binance and Coinbase. Image from Aggr.trade
Insights from trade data reveal that spot bids on both exchanges are contributing to the positive movement for BTC, with notable buying pressure on one platform where bids have surged to $7.98 million in recent hours.
Moreover, a market analyst noted that Bitcoin’s current upward trend could stem from a decrease in selling pressure from traders on another exchange. They stated,
“BTC has been able to breathe ever since the selling from that exchange eased. We’ve even observed some buying activity from those sellers for the first time in over a week.”
Related: Bitcoin surpasses $86K amid potential 11% dip due to US tariff ‘Liberation Day’
Bitcoin neutralizes crucial resistance at $84K to $85K
From a technical viewpoint, Bitcoin has successfully converted a critical resistance zone between $84,000 and $85,000 into a support area. The cryptocurrency is currently positioned above the 50-day, 100-day, and 200-day exponential moving averages (EMAs), indicating a bullish trend.
Bitcoin 4-hour chart. Image from TradingView
However, the external liquidity levels ranging from $87,700 to $88,700—representing prior peaks—might pose a challenge for BTC prices to breach immediately. A period of consolidation within this range, as depicted in the chart, could be beneficial and pave the way for a potential retest of $90,000, the first since March 7.
Conversely, a quick pullback to the current support levels at $84,000 and $85,000 could discourage bullish participants, giving short sellers an opportunity to exert control over the price.
Should Bitcoin close below $85,000 in the upcoming days, bullish sentiment may be invalidated.
As markets prepare for potential volatility in light of the upcoming tariffs from President Trump’s “Liberation Day,” Bitcoin’s price movements are expected to react during the White House press briefing at 4 pm Eastern Time.
Related: Bitcoin could reach $250K in 2025 if the Fed adopts quantitative easing: Arthur Hayes
This content does not provide investment advice or recommendations. All investments and trading decisions carry risks, and readers are encouraged to conduct their own research before deciding.