Bitcoin hits a six-week high above $91,000 amidst trade war tensions. Key resistance levels are identified around $90,000-$91,000 and a crucial yearly open at $93,000. Traders express caution regarding sustainability of this rally, with concerns surrounding potential false breakouts and market divergences with the Nasdaq 100 index.
On April 22, Bitcoin (BTCUSD) reached a six-week high, drawing increased interest from traders amid escalating US trade war tensions. The price exceeded $91,000, the highest level noted since March 7. Concurrently, gold prices also surged, reflecting growing market uncertainties regarding international responses to US trade tariffs.
Chart analysis indicated a pivotal area of resistance for Bitcoin, particularly around the $90,000 mark. The 200-day simple moving average (SMA) is also critical at $88,370, as traders look to validate price movements on daily timeframes. The significance of breaking through the $93,000 level, which corresponds to Bitcoin’s yearly open, was highlighted in several traders’ analyses.
Major trader Daan Crypto Trades remarked on the importance of this $90K-$91K zone, previously acting as a range low. He stressed the necessity for Bitcoin to regain support above these levels to maintain bullish momentum. Keith Alan, co-founder of Material Indicators, echoed similar sentiments regarding the need for caution amidst potential false signals.
However, some traders, like Roman, expressed skepticism about the sustainability of the recent price rally. He noted that the price is currently testing prior support now acting as resistance. Additionally, data from Ecoinometrics indicated that Bitcoin’s rally might not hold, especially if the Nasdaq 100 index continues to decline below its 200-day SMA, highlighting the historical trends of price divergences.
It is crucial to clarify that this article does not provide investment advice. Every trading decision carries inherent risks, and it is vital for traders to conduct thorough research before making any financial commitments.
