Bitcoin (BTC) has struggled to reclaim the $85,000-$86,000 zone amidst market volatility, but analysts are optimistic about a potential breakout. Key resistance levels, such as the 50-day EMA, are crucial for initiating another bull run. The upcoming Easter weekend may affect trading volumes, leading to a less dynamic market. Presently, BTC is trading at approximately $84,521, marking a weekly increase of 1.2%.
Bitcoin (BTC) remains below the $85,000-$86,000 threshold despite a positive weekly performance. Analysts predict a potential breakout from this key resistance level in the near future. Last week, Bitcoin fluctuated between $83,000 and $86,000 following a recovery from a dip below $80,000 that occurred earlier in the month due to external economic pressures, particularly related to the US trade tariff situation.
The recent recovery was sparked by US President Donald Trump’s decision to pause tariffs on over 75 countries for 90 days, elevating Bitcoin back above the $80,000 mark. BTC subsequently tested the $78,500 support level while confronting a four-month downtrend resistance, with price movements constrained between these two levels.
Market analyst Daan Crypto Trades notes that Bitcoin has been navigating a critical zone, approaching its downtrend line and testing the Daily 200 Exponential Moving Average (EMA) and Moving Average (MA). A significant breakout from this challenging price region is anticipated, with a critical target being the $90,000-$91,000 range.
Despite the bullish potential, analysts caution that the upcoming Easter weekend may introduce lower trading volumes and liquidity, potentially leading to a subdued market environment. Daan indicated that, absent any significant news, the market may experience minimal fluctuations during this period.
Analyst Sjuul from AltCryptoGems emphasises that Bitcoin’s inability to rise above the 50-day EMA is hindering its transition into another bull cycle. He noted that Bitcoin has been trading between $78,000 and $95,000 since March, with the 50 EMA acting as a key resistance level.
Breaking the mid-range between $85,000 and $86,000 is crucial for BTC to reach the $90,000 mark and beyond. Sjuul also compared the current price movement to the situation in May 2021, just before the onset of Bitcoin’s significant bull run, asserting that overcoming the 50 EMA will be pivotal in re-establishing bullish momentum.
For Bitcoin to resume its ascent, strong spot buying pressure is essential to breach existing resistance levels. As of now, Bitcoin is trading at $84,521, reflecting a weekly increase of 1.2%.
