Bitcoin Hits Pause – Is $90K Still in Sight?
Market Sentiment Turns Hopeful, but Low Volume and Tariffs Raise Doubts
After a bounce at support in early April, Bitcoin entered a recovery phase that took it from a low of $74,600 to a high of 86,450 but now, upward momentum seems to fade away. The current week has been characterized by indecision and a slowing of pace, with resistance forming around $86K. This level will be important for short-term movement, as a break could trigger a quick rise to 90K.
According to crypto analytics firm Santiment, Bitcoin sentiment has turned bullish among social media users. In an X post, Santiment said “Traders are showing optimism that BTC can regain $90K”. The company’s social media tracker tool passed into bullish territory, reaching 1.973 on April 16.
Rising confidence in Bitcoin on social media is definitely a good sign but will not move BTC’s price on its own. For that to happen, we will need to see some advancements in the tariff negotiations with the EU and the rest of the countries but especially with China. Reciprocal tariffs between the U.S. and China have soared to hundreds of percent, making trade between the two countries nearly impossible.
Fear and uncertainty stay at elevated levels
Although the situation is a bit more stable than before, uncertainty still rules the markets and investors are still wary of risky assets… in fact, they are cautious about all assets, traditional and crypto alike. Trade volumes are dropping as most market participants are waiting to see how the trade war goes.
According to CoinMarketCap’s Fear and Greed Index, the sentiment is now at 30. The tool gauges the market sentiment, with 0 indicating extreme fear and 100 indicating extreme greed. It can also act as an overbought/oversold indicator: the market may be undervalued when the index shows extreme fear or it can be overvalued in times of extreme greed. If the big players consider the market undervalued at the moment, they will likely step in but before that can happen, we need to see a catalyst (*hint* tariff negotiations).
Chart Analysis – BTC/USD
For the entire week, Bitcoin has been stuck in a relatively tight range of about $2,000 and all bullish moves have been rejected, resulting in long candle wicks. This may be a case of large players testing the waters, seeing how the market reacts but it could also be a case of severe indecision. Volume is low, which supports the idea of indecision and market apathy. The cure will be provided by a smooth tariff negotiation or at least rumors about the start of said negotiations.
Although the price is moving sideways right now, it must be noted that the long-term bearish trend line drawn from the All-Time High was broken. This is a major bullish signal but it will need a little incentive to ignite a strong rally. Any bullish news will do it! The next resistance is located around $88,500, followed by $90K.
