Bitcoin (BTC) has risen to approximately $85,500, supported by improved market sentiment due to postponed tariffs by President Trump. Although the Fear and Greed Index has increased, volatility remains as BTC tests resistance levels around $86,000. A breakout above this level could lead to $90,000, while failing to do so may prompt a retest of lower support at $74,400.
Bitcoin (BTC) has experienced a price increase of 0.63% in the last 24 hours, reaching approximately $85,500. Its weekly growth stands at 7.1%, bolstered by improved market sentiment following President Donald Trump’s deferred tariff implementation. The Fear and Greed Index rose from a record low of 15 to 31, suggesting a slight recovery in investor confidence despite ongoing concerns about trade policies.
Over the past day, BTC’s price movement has been volatile, with liquidations occurring for both long and short positions. However, volatility has stabilised compared to previous weeks, leading to increased trading activity. Open interest for Bitcoin indicates that contract volumes may surpass previous levels as external market pressures diminish.
On the daily chart, Bitcoin saw a brief dip below its long-established trend line support last week, prompted by Trump’s tariff announcement. Nonetheless, it found robust support around $74,400, allowing it to rebound above resistance levels, buoyed by external factors from the White House. This rebound likely trapped bearish traders and liquidated numerous short positions, contributing to the price uplift.
Currently, Bitcoin is retesting significant trend line resistance. If it breaks through the bearish descending triangle, a surge to $90,000 could occur—marking a notable milestone after a 45-day period. Momentum indicators like the Relative Strength Index (RSI) are indicating positive momentum, having risen above the signal line, while the MACD histogram reflects consistently higher positive values over the past five days.
Conversely, another breakout beneath the $80,000 level may necessitate a retest of the support at $74,400. Given that many pending orders have been fulfilled at this support level, it appears weaker than last week. Additionally, there is considerable selling pressure at the $84,000 – $86,000 range, as evidenced by data from CoinGlass, impacting current price resistance.
The buying interest around the $75,000 mark has diminished compared to last week, increasing the risk of a bearish breakout. The following sessions will play a crucial role as BTC approaches these pivotal price zones. On a lower time frame, BTC struggles to surpass $86,000, facing significant selling pressure. A previous attempt to break this level has failed, reversing the token’s upward momentum.
As the Asian session revisits this resistance level, trading volumes have not demonstrated strength sufficient for a bullish breakout, indicating a potential for rejection. Recent momentum indicators suggest weakness, with the MACD histogram displaying lower readings and on the verge of entering negative territory. The American session often sets a trader’s tone, and unless BTC decisively moves above the $86,000 threshold, it may risk another trend line break.
