BTC Shatters $90K. ETF Inflows Start Swelling. What’s Next?
The Bulls Are Gearing up for Another Push. $95K Will Be the Next Battle
It has been a good week for crypto, with Bitcoin leading the charge after clues that the thorny U.S.-China tariff situation may see a light at the end of the tunnel. On Tuesday, President Trump gave a first boost to both crypto and traditional markets by saying that tariffs on Chinese products will “come down substantially”. He also added that “it won’t be zero” but probably nobody expected it to be zero anyway.
The President then continued by saying that he would be “very nice to China” if the two parties reached an agreement. The development was viewed as bullish and Bitcoin responded with the most “oomph”, breaking through the resistance at $90,700.
Adding to the bullishness, the Bitcoin spot ETFs came alive and funds began pouring in, bringing Wednesday’s inflow volume to roughly $917 million, very close to Tuesday’s $936 million. This marked a 4-day positive streak, during which the overall inflows reached $2.3 billion. In comparison, in March there was another 10-day streak of positive inflows but it only reached $1 billion. This shows that investor confidence is starting to grow and that appetite for riskier assets is coming back.
Although things are starting to look better, there is still a long way to go. It seems like the ball is in China’s court, seeing as Trump made the first step. A negative or cold response from Beijing would probably re-escalate the situation and will determine Trump to change his “nice to China” approach.
Chart Analysis – BTC/USD
After moving above the long-term bearish trend line drawn from the All-Time High (ATH), Bitcoin began to move sideways in a very tight range. This was rather odd because after a clean break of a major level, usually, the asset moves strongly in the direction of the break.
The uncertainty regarding the trade war was probably the reason that prevented Bitcoin from flying after the break but now since we have just a bit more clarity on the matter, it looks like the bulls are finally ready to challenge the next resistance.
This resistance is represented by $95K, which is the main level to watch going forward. The price already came very close to it and reacted immediately, retracing back to $91,700. The RSI is not yet overbought on a Daily chart, so there is still room for the price to move up without major selling pressure. To the south, the level at $90,700 is the first potential support but it is not yet confirmed.
