Bitcoin has shown resilience over the past week, posting a 2.0% gain, and extending its two-week rally to 5.0%. The leading cryptocurrency recently traded at $87,381, experiencing only a minor 0.1% dip in the last 24 hours. Despite this positive momentum, analysts caution that Bitcoin’s rally might be short-lived.
Institutional Confidence Grows, but Risks Persist
Spot Bitcoin ETFs have recorded nine consecutive days of inflows, totaling $944 million since last Friday, according to SoSo Value. This sustained influx suggests increasing institutional interest, which often signals confidence in Bitcoin’s long-term prospects. However, some experts remain skeptical about whether this momentum can be sustained.
Research firm Fairlead Strategies predicts that Bitcoin’s relief rally could continue for another one to two weeks. However, founder Katie Stockton warns that intermediate-term momentum remains weak.
“Weekly stochastics are not yet oversold, increasing the risk that the rebound is fleeting. We expect the same for most risk assets,” Stockton noted in the firm’s latest Cryptocurrency Compass newsletter.
While acknowledging short-term bullish signals, Stockton suggests Bitcoin could soon enter a consolidation phase, potentially stalling its upward trajectory.
Key Resistance Levels and the ‘Dead Cat Bounce’ Concern
Crypto analyst Koroush AK also shared a cautious outlook, highlighting Bitcoin’s price movements using a liquidation heatmap. According to his analysis, significant selling pressure exists around $89,000, while notable buying interest is seen at $85,000.
“The idea of a high time frame (HTF) dead cat bounce is still valid if price reverts at the highs around the ≈$90K key zone,” he posted on X (formerly Twitter). A dead cat bounce refers to a temporary recovery following a downtrend before further declines resume.
Macroeconomic Factors Could Add Volatility
Beyond technical indicators, macroeconomic factors could also impact Bitcoin’s trajectory. K33 Research recently warned that US President Donald Trump’s tariff announcements on April 2 could introduce market volatility. If high tariffs are imposed, risk assets like Bitcoin may experience downward pressure. Conversely, a delay or selective application of tariffs could ease investor concerns, potentially supporting a price recovery.
Also Read: Bitcoin Price Nears $90K: Is a New All-Time High on the Horizon?
With Bitcoin facing both technical and macroeconomic headwinds, traders remain on high alert. Whether the rally continues or stalls will largely depend on upcoming market catalysts and investor sentiment.
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.
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