Bitcoin (BTC) has surged past $91,000 amid optimism over U.S.-China trade relations, with altcoins like ETH, DOGE, and SUI also experiencing gains. Despite the rally, analysts warn of underlying weaknesses in market demand and liquidity, indicating possible price resistance and future challenges for Bitcoin.
Bitcoin (BTC) recently surpassed $91,000, climbing by nearly 5% due to renewed investor optimism and expectations of easing U.S.-China trade tensions. The CoinDesk 20 Index also increased by 5.2% over the last 24 hours. Treasury Secretary Scott Bessent’s comments about the unsustainability of the tariff standoff have boosted market confidence, suggesting potential for de-escalation soon, although a comprehensive agreement may take years.
The surge in BTC was mirrored by significant gains in altcoins; Ethereum (ETH) rose over 8% to above $1,700, while Dogecoin (DOGE) and Sui’s native token (SUI) increased by 8.6% and 11.7%, respectively. Concurrently, traditional stock markets rebounded, with the S&P 500 gaining 2.5% and the Nasdaq 2.7%. Meanwhile, gold decreased from its peak of $3,500, indicating a shift in investor strategy towards both BTC and gold as safe-haven assets amid inflation concerns.
Despite the positive outlook, analysts from CryptoQuant caution about underlying market weaknesses. On-chain data reveals that Bitcoin demand has decreased by 146,000 BTC over the last month, indicating potential fragility. The demand momentum has dropped to its lowest since October 2024, signalling bearish trends that could influence future price movements.
Market liquidity remains inadequate with the USDT market cap growth below historical thresholds. BTC is now facing a crucial resistance level between $91,000 and $92,000, defined by the Trader’s On-chain Realized Price metric. The current market conditions are classified as bearish by CryptoQuant, suggesting potential price consolidation or retracement if negative sentiment prevails.
