Bitcoin Reaches Six-Week High Amidst Trade War Tensions and Market Caution

Bitcoin reached a six-week high of over $91,000 on April 22, driven by US trade tensions. The price is approaching significant resistance levels, notably the $93,000 yearly open. Analysts are cautious, highlighting the potential for false breakouts amidst divergences with traditional markets like the Nasdaq 100 index.

On April 22, Bitcoin (BTC) reached its highest value in six weeks, exceeding $91,000 as market tensions regarding the US trade war buoyed cryptocurrency investors. Data from Cointelegraph Markets Pro and TradingView highlighted this price surge, which marked the largest increase since March 7. Concurrently, both Bitcoin and gold saw price increases amidst escalating concerns over responses to US trade tariffs from China and Japan.

The BTC/USD traded close to a critical resistance area at around $90,000, which has been a barrier since early March. A significant technical point for traders is the 200-day simple moving average (SMA), positioned at $88,370, now becoming vital to revert to support. Analyst Daan Crypto Trades noted that the market is approaching the $90K-$91K range, the prior low in the trading range, and emphasised the importance of breaking the $93,000 area—Bitcoin’s yearly open—to reinstate a bullish sentiment.

Keith Alan of Material Indicators echoed this sentiment, stressing the necessity of monitoring for potential false breakouts and confirmation of price trends. He commented that reclaiming the Yearly Open could position Bitcoin for a series of upward moving averages, potentially indicating a trend reversal throughout the coming weeks.

Despite this positive outlook from some traders, scepticism concerning the durability of Bitcoin’s rebound persists. Trader Roman advised caution, indicating that the current price level acts as a resistance after previously serving as support. He urged waiting for a weekly close before drawing conclusions, highlighting the prevalence of false signals in the market.

Additionally, analytics platform Ecoinometrics expressed concerns, stating that Bitcoin’s rise contrasts with the declining Nasdaq 100 index. They noted history shows that such divergence tends not to sustain itself, as Bitcoin typically encounters macroeconomic challenges when the Nasdaq performs poorly. This underscores the complex interplay between traditional equities and cryptocurrency markets.