Bitcoin (BTC) reached an eleven-day peak on April 13 as the cryptocurrency market experienced a rally closely aligned with changes in US financial policy. Data illustrated that BTC/USD climbed to $86,000, marking its first increase since April 2. This rise followed the news that the US President had chosen to exempt certain significant products from the ongoing trade tariffs imposed on China.
With traditional markets closed over the weekend, lower liquidity in crypto trading heightened the potential for price fluctuations, leading Bitcoin to dip below $84,000. As the week drew to a close, BTC/USD recorded a 7% gain, rebounding from recent five-month lows.
Traders expressed wariness regarding the sustainability of BTC’s price rally. One trader remarked, “Call me crazy, but I’m skeptical about this $BTC breakout. The volume is low, the stochastics are overbought, and it’s the weekend. If we can hold above $84,000 through Monday, I might consider the potential for higher prices, but for now, it feels risky.”
Another trader pointed out the ongoing interaction with the 200-day exponential moving average (EMA) at $85,000. “This is just a weekend movement so far, and with the approaching week likely to be volatile due to tariff discussions and major tech earnings, we’ll have to wait and see,” the post noted.
A popular trader commented that the bounce from the recent lows appeared “more corrective than impulsive.” Meanwhile, another analyst indicated that the primary obstacle for a Bitcoin market recovery lies within a persistent long-term daily downtrend. “Bitcoin has closed daily above the downtrend, signaling a potential breakout,” they noted, although they cautioned that previous attempts at moving above this downtrend had failed during retests.
As previously mentioned, this daily downtrend that has persisted since late 2024 is viewed as a significant challenge for bullish traders.
Furthermore, another observation highlighted encouraging signs on Bitcoin’s relative strength index (RSI), a classic leading indicator. The RSI was showing another bullish divergence compared to the price on the daily charts. “Bitcoin is forming another higher low on the RSI while the price is establishing lower lows,” the analyst summarized. “Historically, Bitcoin has demonstrated bullish divergences like this several times, often preceding upward reversals.”
Please note that this text is purely informational and does not offer investment advice. All investment and trading involve risks, and readers should thoroughly research their decisions.