Bitcoin’s price has surged to over $91,000, reflecting optimism in U.S.-China trade relations, as altcoins also gain. However, underlying data indicates market fragility and potential resistance levels that may hinder further price growth. The increased interest in Bitcoin ETFs suggests institutional demand but caution is warranted due to liquidity and demand concerns.
Bitcoin (BTC) has seen a significant increase, trading over $91,000 amidst positive sentiments regarding U.S.-China trade relations, with the broader CoinDesk 20 Index up 5.2% in 24 hours. The positive market response was influenced by Treasury Secretary Scott Bessent’s remarks indicating that the tariff standoff with China is unsustainable and expressing hope for a resolution soon.
As Bitcoin neared its recent high of $91,700 — the strongest level since early March — altcoins also experienced upward movement. Ethereum’s ETH rose 8% above $1,700, while Dogecoin (DOGE) and Sui (SUI) gained 8.6% and 11.7%, respectively. The overall market recovery saw major indices like the S&P 500 and Nasdaq rebound by 2.5% and 2.7%.
Despite the upward momentum, analysts from CryptoQuant highlight underlying market vulnerabilities. Bitcoin’s demand has declined by 146,000 BTC over the last 30 days, indicating that, although improved from March, it remains negative. Their metrics show a deterioration in demand momentum to its most bearish levels since October 2024.
Market liquidity also presents concerns, noted by the modest $2.9 billion growth in USDT’s market cap in the last two months—significantly under its historical averages during BTC rallies. Furthermore, Bitcoin is approaching a critical resistance zone between $91,000 and $92,000, a range that has previously acted as resistance during bearish trends.
With these factors considered, the current market conditions are assessed as bearish. If investor sentiment undergoes weakening, a price pullback may occur, cautioning traders ahead of potential volatility.
