Bitcoin’s price has been stuck below $90,000 for a while now, making many investors nervous. The overall market is cautious because of rising global tensions, especially between the US and China. Trade wars and recession fears are making people move their money out of risky investments.
Bitcoin’s Relative Strength
But there’s some good news. One crypto analyst, Daan, pointed out on X (formerly Twitter) that Bitcoin is actually doing better than the stock market. Looking at the BTC/SPX chart (Bitcoin compared to the S&P 500), Bitcoin’s showing relative strength. This is impressive given the current market turmoil and suggests Bitcoin might be more resilient than we think. February was tough for Bitcoin, but that followed a strong January, and holding up against major stock indices is a positive sign. If this trend continues, it could be the start of a Bitcoin recovery – assuming the stock market doesn’t crash again.
Bitcoin’s Price Action: A Tight Range
Bitcoin is currently trading between $81,000 (support) and $88,000 (resistance). After a period of volatility, buyers are starting to push back, keeping the price above important support levels. While the global economy is still uncertain, there’s a cautious optimism in the market. Investors are balancing the risks of global conflict and inflation against the long-term potential of Bitcoin. Daan’s analysis shows Bitcoin is steadily outperforming traditional markets, which is encouraging. He also notes that Bitcoin’s February dip followed a strong January rally, and continued relative strength could mean good things for Bitcoin, provided the stock market doesn’t take another major dive. A breakout above or below this range will likely determine the next big price movement.
Technical Analysis: Key Support and Resistance
Bitcoin is currently around $85,200. It’s holding above its 4-hour 200-day moving average (MA) and exponential moving average (EMA), both around $84,000. This is providing support, preventing a bigger price drop. However, the overall trend is still uncertain, and momentum is slowing down just below major resistance.
To confirm a recovery, Bitcoin needs to break above $90,000. That would signal a new high and a more bullish trend. The $88,500 level is a key hurdle; breaking above it convincingly would open the way for further gains.
Conversely, if Bitcoin can’t break above $88,500, the price could fall back below $81,000, suggesting a deeper correction. For now, the market is waiting for a decisive move to show which way it’s going.