Bitcoin’s price jumped from $74,450 to nearly $94,900 in April, nearing the $100,000 benchmark. Long-term holders saw a $26 billion wealth increase post-correction in early January. The recent breakout from a falling wedge pattern and improved investor sentiment, aided by potential tariff reductions, have set the stage for further price movements. Analysts predict possible consolidation between $94,900 and $88,750, with a key resistance point at $100,000. The upcoming weeks are crucial for Bitcoin’s trajectory.
Bitcoin’s price took a sharp leap in April, climbing from around $74,450 to hit nearly $94,900. This impressive surge has pushed the cryptocurrency closer to that coveted $100,000 mark, a figure that’s been eagerly anticipated by investors for years now. This rise comes on the heels of a correction, seen by many as quite standard, where Bitcoin dropped about 30% between January and the beginning of April. These sorts of corrections are really nothing unusual for Bitcoin, especially following new all-time highs.
For those longer-term holders, the market upswing brings a sense of vindication. New data from CryptoQuant highlights how the realised market cap for long-term Bitcoin holders increased from $345 billion to $371 billion between the start of April and the 23rd, translating to about a $26 billion increase in collective wealth. This marks a significant trend reversal, although it’s interesting to note that many short-term holders didn’t enjoy the same fortune and sold at a loss during the April dips.
Looking at the market behaviour, Bitcoin has successfully broken out from a four-month falling wedge pattern, an indicator usually suggesting a turning point from a downward to an upward trend. Moreover, Bitcoin managed to close above its 200-day moving average, a positive sign, although somewhat tempered by lower trading volumes. On the technical side, the relative strength index (RSI) backs up the positive momentum, sitting above 50, yet still below overbought levels. This bodes well for further price hikes.
Interestingly, the data shows that around 16.7 million BTC across various addresses are currently in profit. Historical trends from previous years suggest that when Bitcoin maintains this status above crucial levels, it often leads to significant bull runs, pushing prices up in the following months. This is particularly noteworthy given the differing behaviours observed among short-term and long-term holders during the market fluctuations.
As for what lies ahead, analysts are projecting a period of consolidation for Bitcoin between $94,900 and $88,750. There’s technical analysis suggesting we might see some cooling following the recent rally. Key support levels sit between $90,500 and $88,750; if these levels are breached, Bitcoin may plunge to around $84,000 to $86,300, a range where it previously consolidated before the recent rise.
On the flip side, the psychological level of $100,000 stands as a key pressure point, and if Bitcoin can surpass it, the next target could be near $107,000, reflecting peaks from previous months. This potential upswing coincides with heightened investor sentiment after recent White House statements regarding tariffs on China that hinted at scaling back trade tensions, something President Trump mentioned would see the levy significantly lowered.
As Bitcoin continues to rally, it’s also worth mentioning it still has a way to go to reach its all-time high of $109,000 from January. However, it has rebounded about 25% from its low in early April. Despite recent prices hovering around $93,500, it’s still making a play for that $100,000 milestone that has captured so many imaginations in the crypto realm. The coming weeks may be significant for Bitcoin, with market eyes watching closely to see if the momentum holds or if profit-taking triggers any pullbacks, shaping the path for much of 2025.
