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Cryptocurrency News Articles

Bitcoin (BTC) Trading Slightly Above $90K00 as New Week Kicks Off

Apr 29, 2025 at 08:00 am

Bitcoin (BTC) Trading Slightly Above $90K00 as New Week Kicks Off

Bitcoin (BTC) is trading slightly above $95,000 as the new week kicks off with rising expectations for a larger recovery rally. After months of volatility and uncertainty, BTC has started to show signs of strength, breaking above the critical $90K mark—a major pivot zone for market sentiment.

However, caution remains high as global trade tensions between the US and China continue to create an unstable financial backdrop, and fears of a possible recession could create a difficult environment for risk assets like Bitcoin in the months ahead.

One of the most notable developments is Bitcoin's changing behavior relative to US equities. For the first time in months, BTC appears to be decoupling from traditional markets, a shift analysts believe could trigger an aggressive surge if current levels hold. The price action over the next few days will be crucial in defining Bitcoin's short-term and medium-term trend.

To further support the bullish case, data from IntoTheBlock reveals a significant increase in short-term traders' balances last week, pointing to renewed speculative demand. If this trend persists, it could signal that Bitcoin's latest move is more than just a relief rally, potentially marking the opening leg of a broader uptrend.

However, volatility remains high, and bulls must defend key support levels to avoid a sharp reversal. Overextended leverage, a fragile global economy, and persistent macroeconomic uncertainty could quickly reverse sentiment.

Bitcoin Needs To Hold Key Level

Bitcoin is now showing solid signs of strength after consolidating around key support levels. After a series of healthy retests at lower demand zones, BTC looks ready to continue its upward trajectory.

However, global tensions remain a major threat, and fears of a possible recession could create a difficult environment for risk assets like Bitcoin in the months ahead.

Currently, Bitcoin is entering a critical phase where price action could determine the next few months of market behavior. Bulls are in short-term control after reclaiming important levels like $90K, but the risks of a sharp downturn remain high, as macroeconomic uncertainty continues to dominate sentiment.

Adding to the bullish momentum, IntoTheBlock shared data revealing that Bitcoin saw a significant increase in short-term traders’ balances last week, pointing to renewed speculative demand. This trend is critical because it suggests fresh capital and new market participants are entering the space, fueling the current price action.

If this influx persists, it would support the view that the current move is more than just a relief rally, potentially marking the opening leg of a broader, sustained uptrend for Bitcoin.

Nevertheless, caution remains necessary. Overextended leverage, rising volatility, and global economic fragility could quickly reverse sentiment. Bitcoin needs to hold above $90K and ultimately break above $100K to truly confirm the start of a new bullish phase. Until then, traders and investors must remain flexible and alert to both upside opportunities and downside risks.

Original source:bitcoinist

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