Bitcoin Approaches $90,000: Bullish Trends Amid Caution

Bitcoin (BTC) has seen a 9% rise this week, nearing supportive levels above $88,000 while bullish indicators like the DMI and Ichimoku Cloud signal strong buyer control. Potential targets include $90,000, but trade tariff uncertainties pose risks for a pullback towards the $81,000 mark. Analysts recommend monitoring market reactions to these factors.

Bitcoin (BTC) has experienced a 9% increase over the past week, attempting to solidify support above the critical $88,000 level. Indicators such as the Directional Movement Index (DMI) and Ichimoku Cloud are displaying bullish tendencies, indicating that buyers are currently dominating the market. If this positive momentum continues, BTC may soon target resistance levels close to $90,000, although potential disruptions from uncertainties surrounding trade tariffs could lead to a pullback towards the $81,000 support zone.

The Bitcoin DMI chart indicates an increase in trend strength, with the Average Directional Index (ADX) rising from 24.07 to 29.54. This uptick signifies increasing momentum, approaching the 30 mark, which traditionally indicates a strong trend. While the ADX alone does not indicate price direction, when combined with directional indicators, it reveals the prevailing market force. Presently, the bullish Directional Indicator (+DI) is at 23.47, showing stability, while the bearish Directional Indicator (-DI) has decreased significantly, suggesting reduced bearish pressure and indicating buyers’ increasing control.

The Ichimoku Cloud analysis for Bitcoin reveals a clear bullish trend, with prices consistently above both the Tenkan-sen (blue line) and Kijun-sen (red line). This positioning indicates robust momentum for buyers in the short and medium term. The flat Kijun-sen serves as a supportive barrier, while the ascending Tenkan-sen highlights ongoing buyer activity in shorter timeframes. The green Kumo (cloud) strengthens the optimistic outlook, as the price remains above the cloud, affirming the established bullish trend. A gap between the current price and the cloud suggests that the market may retract without altering the overarching bullish structure.

Should Bitcoin sustain its current trajectory, it may soon challenge the resistance at $88,839, with a significant psychological milestone at $90,000. If the momentum remains strong, further targets include $92,920 and potentially $98,484, continuing the bullish trend. However, analyst Nic Puckrin warns that this upward momentum might be fleeting due to uncertainties related to Trump’s trade tariffs, which could negatively impact Bitcoin prices. He emphasises that the positive trend could evaporate rapidly under unexpected announcements regarding tariffs or market shifts, noting the cautious market response reflected in low liquidations around $200 million.

Currently, traders are in a “wait and see” stance, with $88,000-$90,000 being the critical range to monitor. Liquidity pool clusters at these levels suggest upcoming volatility, although a healthy correction to retest $81,000 support would still align with a sustainable price recovery, provided Bitcoin remains above this threshold. Overall, macroeconomic conditions are recognised, yet the market remains anxious about unforeseen disruptions, particularly given the unpredictable nature of recent tariff announcements that have influenced global financial markets.