Bitcoin (BTC) has sparked renewed optimism among investors, but analysts caution that reclaiming $93,000 as support is crucial to avoiding a deeper correction. As BTC nears $90,000, conflicting signals in the market suggest the battle for long-term bullish momentum is far from over.
Bitcoin Approaches Key Resistance Amid Market Optimism
On March 24, BTC/USD surged to $88,772 on Bitstamp, marking its highest level since March 7. The price increase came as traditional markets opened the week with strong gains, with the S&P 500 and Nasdaq Composite index rising 1.6% and 2%, respectively. Analysts attribute this rally to the U.S. government’s decision to soften new trade tariffs, a move seen as favorable for risk assets.
Further fueling bullish sentiment, speculation has emerged regarding the potential for the U.S. government to sell gold reserves and use the profits to purchase Bitcoin. Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, highlighted this possibility, noting that with gold at all-time highs, such a strategy could be “budget-neutral.” The mere prospect of this move has injected fresh enthusiasm into the crypto market.
Key Levels to Watch for Bitcoin’s Next Move
Despite Bitcoin’s recent uptick, Material Indicators co-founder Keith Alan emphasized two key levels that must be reclaimed for BTC to sustain its upward trajectory.
- The 21-day Simple Moving Average (SMA), currently at $84,674, is a crucial short-term support level.
- The 2025 yearly open at $93,300 serves as a major resistance point, and failure to flip it into support increases the risk of another downturn.
Alan warns that unless Bitcoin convincingly reclaims these levels, the probability of revisiting recent lows remains high. “Until then, the risk of a deeper correction persists,” he stated.
Market Sentiment: Bull Trap or Path to New Highs?
With Bitcoin at a pivotal juncture, traders must remain vigilant. While the bullish narrative gains traction, reclaiming $93,000 as support is essential to confirming a long-term uptrend. Otherwise, Bitcoin could face renewed sell-side pressure, leading to potential retests of lower levels.
Also Read: Michael Saylor’s Strategy Surpasses 500,000 Bitcoin with $584M Purchase
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
