The price of Bitcoin unexpectedly surged, reaching a session peak of $88,500. However, will these gains face limitation at a multi-month resistance level coinciding with the 50-day moving average?
Key highlights:
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Bitcoin has continued its rally from April 1, bolstered by updates indicating that the Trump administration has yet to finalize its “Liberation Day” tariffs.
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Countries such as Israel, Mexico, and India have either rolled back tariffs on U.S. imports or signaled that they will not retaliate with corresponding tariffs in response to the anticipated U.S. tariffs set for April 2.
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Bitcoin (BTC) is trading just below a three-month descending trendline resistance where the price has faced repeated rejections during previous upswings.
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Total market liquidations in the last 12 hours have amounted to $145 million, with $69.4 million accounted for by liquidations of Bitcoin short positions.
Data from various sources indicates that short liquidations have contributed to today’s climb above $88,500.
Liquidations in the crypto market over the past 12 hours.
Recently, Bitcoin has faced challenges in maintaining the profits from leveraged rallies. Nevertheless, there are emerging positive trends indicating that market dynamics might be shifting from bearish to bullish.
The accompanying chart illustrates that the latest rallies have seen strong demand in the spot market alongside the resurgence of the Coinbase Pro premium, prompting some analysts to consider that companies focused on accumulating Bitcoin are actively buying.
Coinbase premium index.
In the past two weeks, companies like GameStop, MARA, Metaplanet, and Strategy have revealed intentions to increase their Bitcoin holdings, with GameStop on the verge of making a purchase and Strategy actively expanding its BTC position.
GameStop secures $1.5B for potential BTC acquisition.
In the near term, the sustained buying volume on platforms like Binance and Coinbase Pro, along with the markets’ reaction to President Trump’s “Liberation Day” tariffs, are expected to be significant factors influencing the current bullish trend in Bitcoin’s price.
Related: Bitcoin price on the verge of breaking a 10-week downtrend—Is $90K BTC next?
This article does not offer investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct thorough research before making choices.