Bitcoin had a volatile start to April after recovering from its most recent slump.
According to a new report from CryptoQuant, the $84,000 zone now acts as a major resistance zone for Bitcoin.
Bitcoin’s ongoing recovery on 9 April came amid a 90-day pause on new tariffs, as announced by Trump.
While the rally has been welcomed with open arms across the financial markets, it also raises bull-trap concerns.
According to QCP Capital, if China responds agressively to Trump’s decision the market might be looking at a “classic bull trap.”
Bitcoin is in the middle of another crossroads as the second quarter of the year begins.
The cryptocurrency had a volatile start to April after recovering from its most recent slump.
Bitcoin is now hovering just underneath the $84,000 mark, and while many analysts are optimistic about its price performance over the long term, there are some concerns to be aware of.
According to insights from CryptoQuant analysts, if the bulls fail to stage a convincing comeback, Bitcoin could stall (or even crash again) in the coming weeks.
Previous Support Levels Now Act as Resistance
According to a new report from CryptoQuant, the $84,000 zone now acts as a major resistance zone for Bitcoin.
If the bulls step in and this ceiling is broken, it could open the door to a rally further up to the $96,000 zone.
However, if the bulls fail to take charge of the situation, investors could be looking at another sharp decline.
According to CryptoQuant, certain price levels once served as major support zones for Bitcoin during its bull run.
However, these zones now serve as resistance. In other words, unless momentum returns to the upside, these zones could block further gains for the cryptocurrency.
“This has been the case in past bearish cycles,” the report explains.
As of 10 April, Bitcoin is now trading around the $80,000 zone after dropping by around 3.5% from its $83,000 zone a day before.
The decline came after a sharp dip earlier in February and then again in March after much trade uncertainty from the US and its tariffs.
Bitcoin’s price has so far fallen from a high of $85,000 on 1 April to a low of around $76,000 by 8 April.
A Temporary Rebound on Tariff Pause
Bitcoin’s ongoing recovery on 9 April came amid a 90-day pause on new tariffs, as announced by Trump.
Interestingly, this pause exempted China, whose rates were instead increased to around 125%.
This decision triggered a relief rally across the financial markets, with Bitcoin surging by around 9% towards the $83,000 level.
The traditional markets also followed suit, with the S&P posting its third-largest daily gain since World War II.
The Nasdaq 100 itself jumped over 12%.
While the rally has been welcomed with open arms across the financial markets, it also raises an important question:
Is this a turning point or another bull trap?
Bitcoin is still facing pressure from other macroeconomic factors like inflation and recession scares.
Bitcoin’s increasing correlation to tech stocks now makes it more vulnerable than ever to market-wide shocks.
If inflation starts to accelerate and central banks start to tighten their monetary policies again, investors might rush out of the risk asset market and trigger another price slide.
Technical Levels to Watch
From a technical standpoint, there are now several price zones that Bitcoin must reclaim in order to maintain its ongoing bullishness.
To start with, its 365-day moving average currently sits at around $76,000, making this price level a very important one.
If a break below occurs, Bitcoin could be at serious risk of triggering a complete bear market.
The 200-day MA sits at around $87,000 and is a target for medium-term bullish momentum.
Finally, the 111-day MA and short-term holder cost basis coincide at around $93k and a reclaim of this zone could be the ultimate signal that Bitcoin is back in business.
According to Glassnode in a recent update, if Bitcoin fails to hold above the 365-day MA, a drop towards $71,000 is likely.
As a worst-case scenario for a medium-term dip, Bitcoin could be on its way to its true market mean near $65,000.
The China Factor
While Trump’s tariff pause has provided some relief to the market, the situation in China remains critical.
The US’ tariff raise on Chinese imports caused a retaliatory tariff announcement from the Asian country of 84% on U.S. goods starting 10 April.
According to QCP Capital in a recent note, this escalation could reverse the recent rally and if China responds aggressively, the market might be looking at a “classic bull trap.”
Whether the tensions will cool off after the 90-day grace period remains to be seen.
However, it is expected to have major implications for Bitcoin, over whether a recovery or another crash comes next.
On one hand, increased liquidity and strong tech stock performance could send Bitcoin over the wall toward $96,000, before new highs above $130,000.
On the other hand, if things escalate the wrong way from here, it could push Bitcoin below $76,000, or worse.
For now, all eyes are on $84,000 and whether Bitcoin can indeed break through.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Bitcoin (BTC) Price Faces Its Biggest Test Yet — Will Bulls Step Up?
Key Insights
Bitcoin is in the middle of another crossroads as the second quarter of the year begins.
The cryptocurrency had a volatile start to April after recovering from its most recent slump.
Bitcoin is now hovering just underneath the $84,000 mark, and while many analysts are optimistic about its price performance over the long term, there are some concerns to be aware of.
According to insights from CryptoQuant analysts, if the bulls fail to stage a convincing comeback, Bitcoin could stall (or even crash again) in the coming weeks.
Previous Support Levels Now Act as Resistance
According to a new report from CryptoQuant, the $84,000 zone now acts as a major resistance zone for Bitcoin.
If the bulls step in and this ceiling is broken, it could open the door to a rally further up to the $96,000 zone.
However, if the bulls fail to take charge of the situation, investors could be looking at another sharp decline.
According to CryptoQuant, certain price levels once served as major support zones for Bitcoin during its bull run.
However, these zones now serve as resistance. In other words, unless momentum returns to the upside, these zones could block further gains for the cryptocurrency.
“This has been the case in past bearish cycles,” the report explains.
As of 10 April, Bitcoin is now trading around the $80,000 zone after dropping by around 3.5% from its $83,000 zone a day before.
The decline came after a sharp dip earlier in February and then again in March after much trade uncertainty from the US and its tariffs.
Bitcoin’s price has so far fallen from a high of $85,000 on 1 April to a low of around $76,000 by 8 April.
A Temporary Rebound on Tariff Pause
Bitcoin’s ongoing recovery on 9 April came amid a 90-day pause on new tariffs, as announced by Trump.
Interestingly, this pause exempted China, whose rates were instead increased to around 125%.
This decision triggered a relief rally across the financial markets, with Bitcoin surging by around 9% towards the $83,000 level.
The traditional markets also followed suit, with the S&P posting its third-largest daily gain since World War II.
The Nasdaq 100 itself jumped over 12%.
While the rally has been welcomed with open arms across the financial markets, it also raises an important question:
Is this a turning point or another bull trap?
Bitcoin is still facing pressure from other macroeconomic factors like inflation and recession scares.
Bitcoin’s increasing correlation to tech stocks now makes it more vulnerable than ever to market-wide shocks.
If inflation starts to accelerate and central banks start to tighten their monetary policies again, investors might rush out of the risk asset market and trigger another price slide.
Technical Levels to Watch
From a technical standpoint, there are now several price zones that Bitcoin must reclaim in order to maintain its ongoing bullishness.
To start with, its 365-day moving average currently sits at around $76,000, making this price level a very important one.
If a break below occurs, Bitcoin could be at serious risk of triggering a complete bear market.
The 200-day MA sits at around $87,000 and is a target for medium-term bullish momentum.
Finally, the 111-day MA and short-term holder cost basis coincide at around $93k and a reclaim of this zone could be the ultimate signal that Bitcoin is back in business.
According to Glassnode in a recent update, if Bitcoin fails to hold above the 365-day MA, a drop towards $71,000 is likely.
As a worst-case scenario for a medium-term dip, Bitcoin could be on its way to its true market mean near $65,000.
The China Factor
While Trump’s tariff pause has provided some relief to the market, the situation in China remains critical.
The US’ tariff raise on Chinese imports caused a retaliatory tariff announcement from the Asian country of 84% on U.S. goods starting 10 April.
According to QCP Capital in a recent note, this escalation could reverse the recent rally and if China responds aggressively, the market might be looking at a “classic bull trap.”
Whether the tensions will cool off after the 90-day grace period remains to be seen.
However, it is expected to have major implications for Bitcoin, over whether a recovery or another crash comes next.
On one hand, increased liquidity and strong tech stock performance could send Bitcoin over the wall toward $96,000, before new highs above $130,000.
On the other hand, if things escalate the wrong way from here, it could push Bitcoin below $76,000, or worse.
For now, all eyes are on $84,000 and whether Bitcoin can indeed break through.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.