Bitcoin is experiencing significant price movements, with resistance noted between $88,000 and $91,000. Increasing global liquidity, a weak U.S. dollar, and recent tariff changes are contributing to rising demand. While analysts target $150,000, they caution that the upcoming Federal Reserve meeting could influence market stability.
Bitcoin (BTC) recently surged above $87,000 in early April, driven by growing investor interest in hard assets due to inflation concerns and a weakening U.S. dollar. However, it faces significant resistance between $88,000 and $91,000 due to key technical levels, including the 200-day and 100-day moving averages, which may obstruct any advance towards the $150,000 target sought by bullish investors.
Analysts have noted a decline in exchange inflows, indicating a reduced intention to sell, alongside an increase in open interest of $6 billion over two weeks, suggesting a rising long exposure among traders. This scenario points to growing confidence as liquidity also increases in global markets.
The rally in Bitcoin correlates with a rise in global liquidity, propelled by an expanding M2 money supply and further compounded by a falling U.S. dollar. Simultaneously, gold has reached an all-time high of $3,400 per ounce, underscoring a robust demand for hard assets. The Dollar Index fell to 98.5, its lowest since February 2022, supporting this trend.
Market sentiment varies, with some analysts urging caution ahead of the Federal Reserve’s upcoming policy meeting on May 6-7. Decisions from this meeting could significantly influence Bitcoin’s price trajectory, especially in light of President Trump’s trade policies and recent tariff implementations.
The futures open interest for Bitcoin has risen consistently, while the net inflows into BTC spot ETFs, although currently low at $12.7 million, indicate a potential turnaround in institutional interest. Analysts remain optimistic about Bitcoin’s positioning as a safe haven asset, especially as gold prices continue to soar.
A notable price target of $150,000 has emerged, with analysts like CryptoELlTES and Danny_Crypton asserting that a bullish rally is underway. They anticipate that a decisive surge past the critical resistance level of $91,000 could open the floodgates for Bitcoin’s ascent, although macroeconomic factors remain a substantial uncertainty.
