Bitcoin surged back to $87,000 on Monday, fueling hopes for a major rally as the cryptocurrency market mirrors broader market optimism. But can this momentum sustain?
Bitcoin Price Breaks Key Resistance
Bitcoin made a strong comeback on Monday, reclaiming the $87,000 mark and suggesting a bullish turnaround. The upward momentum that began on Sunday continued, pushing Bitcoin to break the $85,000 resistance level.
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A strong sign of market confidence is evident as approximately 7,000 Bitcoin in new positions have been opened on Binance Futures, indicating fresh capital flowing into leveraged Bitcoin positions, according to CoinGlass data.
โThis is a good sign, volatility is coming,โ CoinGlass noted.
Risk Appetite Returns
Bitcoinโs weekend recovery follows the S&P 500โs end to a four-week losing streak on Friday, suggesting renewed risk appetite among investors.
The uptick in Bitcoin aligns with rallies in higher-risk technology stocks, suggesting that digital currencies are currently trading more like equities rather than serving as safe-haven assets like gold.
Additionally, market jitters may be easing as signals indicate that President Donald Trumpโs next round of tariffs, set to take effect on April 2, could be milder and more moderate than previously expected.
Technical Setup Suggests Bitcoin Price Could Surge Higher
Bitcoin is once again in a critical support zone, resembling its setup before last yearโs major rally. Crypto trader Titan of Crypto suggests Bitcoin could be on the verge of a significant price surge.
Bitcoin faced resistance at the 50% Fibonacci retracement and the weekly 50 EMAโtechnical levels often signaling trend reversals. Meanwhile, the weekly RSI is holding firm at major support, indicating that bullish momentum remains intact.
โThe setup is there,โ Titan concludes.
However, the next crucial phase is a weekly retest of support, which could set the stage for Bitcoin to push higher.
If Bitcoin holds support and breaks through the $88,000โ$90,000 zone, it could trigger a significant upward move toward new all-time highs.
On the Flipside
- If Bitcoin fails to breach the $88,000โ$90,000 zone, a pullback to the low $80,000s could occur, giving bears the upper hand and forcing bulls to recalibrate their strategies.
Why This Matters
Bitcoinโs current price action is pivotal for both short-term traders and long-term investors. A breakout could signal renewed bullish confidence, potentially shifting market dynamics. Conversely, a pullback could dampen sentiment, increasing volatility across the crypto market.ย
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