Bitcoin hit a six-week high at $91K on April 22, driven by US trade tensions. Traders are now watching key resistance levels, especially around $93K, as sentiment remains cautious with past fakeouts in mind.
On April 22, Bitcoin (BTC) reached a six-week peak, closing in on $91,000 as mounting tensions in the US trade war invigorated crypto bulls. After opening stronger in the Wall Street session, BTC/USD hit levels unseen since March 7, taking advantage of market nerves driven by fears over US tariffs and mixed signals from global players like China and Japan.
The sentiment wasn’t just limited to Bitcoin. Gold also saw significant gains, with XAU/USD achieving fresh all-time highs the same day. Meanwhile, BTC struggled with a crucial bull market support trendline that had transformed into resistance since early March. Traders were keenly eyeing the 200-day simple moving average (SMA) positioned around $88,370, a key level that needed to flip to support.
Analyzing the situation, trader Daan Crypto Trades commented on X, noting, “Closing in on the big $90K-$91K horizontal area which acted as the previous range low.” He highlighted the importance of breaking through the $93,000 level, Bitcoin’s yearly opening mark, to establish a moving average reclaim.
Others in the trading community shared this sentiment. Keith Alan from Material Indicators emphasized the need for caution, adding that the real signal for a trend reversal would be reclaiming that yearly open. “If history has taught us anything, it’s important to watch for fake outs and confirmations,” Alan said, implying that prudent traders should stay alert.
Yet, not everyone was convinced that the BTC bounce would stick. Trader Roman expressed caution, pointing out that price levels were currently retesting prior supports as new resistances. “Wait for weekly close before you make assumptions or get excited. We’ve seen so many fakeouts before. 5 days left!” he advised, highlighting a need to hold off on all assumptions until the week’s end.
The analytics firm Ecoinometrics shared the sentiment of skepticism, depicting a divergence between Bitcoin’s gains and the Nasdaq 100 index, which was dipping. It noted, “Bitcoin is climbing. The NASDAQ is sliding. That kind of divergence doesn’t usually last.” The warning is clear: historically, when the Nasdaq’s 200-day moving average is declining, Bitcoin faces macroeconomic headwinds that could stymie its growth.
It’s worth remembering that this article doesn’t serve as investment advice. Each trading move carries inherent risks and it is crucial for readers to do thorough research before making decisions.
In summary, Bitcoin’s recent surge to $91,000 has sparked optimism amidst rising US trade tensions and positive movements in gold. However, significant levels, especially around $93,000 and the 200-day SMA, are critical for sustaining this bullish momentum. Traders and analysts remain divided, some urging caution against potential fakeouts in the market, underscoring the need to closely monitor forthcoming price movements and market conditions. With uncertainty underpinning the market, the next few days will be pivotal for BTC traders.
Original Source: cointelegraph.com
