Bitcoin (BTC) had a great start to Q2. On April 2, it rose 5.53% to an intraday high of $87,333. Bitcoin has been going down since January 20 when its price hit a high of $110,000. This rise could be the start of a new trend. As the positive trend grows, investors are looking forward to the next big goal: a retest of $90,000. But will BTC keep going in this direction, or is a correction coming?
Speculators Fuel Rally
During March, Bitcoin spot traders on Binance and Coinbase took different stances. Binance traders sold BTC quickly, but Coinbase traders made strong spot buys around $80,000. This made a trade range that didn’t move for most of the month.
But as April began, all the prominent exchange traders became bullish. Spot bids on Coinbase rose to $7.98 million, showing a lot of pressure to buy. Notably, even Binance buyers slowed down, allowing BTC to go up.
A crypto markets expert named Dom says this change in selling pressure has given BTC room to “breathe.” For the first time in weeks, Binance has shown spot buying.
BTC Swaps Key Resistances
Regarding technical analysis, Bitcoin has turned the area between $84,000 and $85,000 that was opposition into support. BTC is also trading above the exponential moving averages (EMAs) for the past 50, 100, and 200 days, which is another sign that the structure is favorable.
BTC meets liquidity resistance between $87,700 and $88,700, where previous highs formed, even though it is strong. If the price goes above this level, it could lead to a retest of $90,000, but there may be quick consolidation before BTC makes its next move.
Should Bitcoin Break $90K or retrace?
BTC needs to stay above $85,000 for bulls to remain in charge. If the daily close falls below this level, it could mean that the negative case is over, which would allow short sellers to take control.
Conclusion
Buyers are hopeful after Bitcoin recently rose above key resistance levels. BTC will soon test the $90,000 mark since spot buying pressure is rising and technical signs favor bulls. However, support from $87,700 to $88,700 could cause a short-term hold before another push-up.
