Bitcoin Price Retraces to $92,400 After 27% Surge in Two Weeks

Bitcoin’s price has retraced to $92,600 after hitting a seven-week high of nearly $94,000, following a rally of 27% in two weeks. Factors contributing to this movement include easing US-China trade tensions and significant Bitcoin ETF inflows. While $95,000 remains a critical resistance level, support lies at $91,700. Despite recent volatility, market sentiment is improving, and institutional interest remains strong.

Bitcoin (BTC) has retraced to around $92,600 following a significant two-week gain of approximately 27%, peaking at nearly $94,000. This recent price movement occurred after Bitcoin reached a seven-week high of $94,696 on Wednesday; however, the momentum could not be maintained. Traders seem to be taking profits at these elevated levels, with strong resistance visible at the $95,000 mark and support around $91,700.

On April 24, Bitcoin began trading near $93,000 but dipped to $92,410 during morning hours. Despite this pullback, Bitcoin retains a dominant position in the cryptocurrency market, commanding 63.55% market share. Current market capitalisation is about $1.83 trillion, with reported daily trading volume around $37.7 billion, as per market data.

Positive geopolitical developments acted as catalysts for Bitcoin’s rally, particularly after President Trump signalled a potential easing of trade tariffs with China. This alleviation of trade tensions, coupled with Trump’s support for Federal Reserve Chair Powell, has enhanced market confidence. Furthermore, Japan’s Economy Minister is set to engage in tariff discussions in Washington, contributing to an investor-friendly atmosphere.

Amid these positive trends, Bitcoin briefly ascended to the fifth-largest asset globally, surpassing corporations such as Google and Amazon, with a market valuation close to $1.87 trillion. However, following the recent price retreat, Bitcoin has reverted to the eighth position in global asset rankings, dropping below silver.

Investor behaviour has shown intriguing dynamics, as retail traders are locking in profits, while institutional investors continue to accumulate Bitcoin positions. This interest is underscored by Bitcoin ETFs reporting inflows of approximately $1 billion on April 22, marking a notable influx of institutional investment.

From a technical standpoint, significant resistance is observed at approximately $95,000, coinciding with a prior market rebound. Immediate support is found around $91,700. Analysts like Markus Thielen express caution regarding the market, noting stablecoin minting remains below levels typically associated with robust rallies. Furthermore, $91,275 has been identified as a potential selling pressure zone for short-term investors eager to break even.

Market sentiment is improving, reflected in the fear and greed index rising to 53 from 25, indicating a shift towards a more neutral outlook. Nevertheless, derivative signals remain mixed, with modest futures premiums and neutral options data suggesting traders are undecided on directional outcomes in the short term.

Analysts are advising caution and monitoring upcoming economic data, such as US jobless claims, which may influence Bitcoin’s price movements. Optimists like Piyush Walke anticipate Bitcoin is strategically consolidating its recent gains, potentially moving above the $94,000 threshold soon.