Bitcoin is hanging tough above $85,000, showing signs of a comeback as investor sentiment improves.
A Temporary Boost?
This renewed momentum follows a recent announcement: a 90-day pause on tariffs (except for China) which gave global markets a shot of optimism. Bitcoin, after a bumpy ride, is now eyeing a breakout above $87,000–$90,000. Breaking through these levels with strong volume could signal a bigger upward trend.
According to CryptoQuant, buyers have been dominating the derivatives market since Friday. This is a good sign, suggesting that leverage is now pushing the price up. However, big economic risks remain, including trade tensions and interest rate uncertainty.
Bitcoin’s Strength: Indicators Point Up
Bitcoin seems poised for a potential price surge as buyers continue to push the price higher. After weeks of uncertainty and volatility, Bitcoin’s resilience above $85,000 shows buyers are gaining strength.
Despite the positive signs, global economic worries are still a major factor. US trade policy, global instability, and recession fears make things tricky for risky assets like crypto.
Some analysts are cautiously optimistic, predicting a recovery if Bitcoin stays above its 200-day exponential moving average and key support levels. Others are more skeptical, warning that continued uncertainty could send the price down again.
Analyst Axel Adler pointed out that the cumulative net taker volume (which measures aggressive buying vs. selling) has turned positive. This shows buyers are getting more confident. He also noted that buyers have taken control of the derivatives market, further supporting a bullish outlook. Combined with growing spot demand, this shift in momentum could lead to a bigger price increase.
Crucial Resistance: Will Bulls Prevail?
Bitcoin is trading around $85,700, struggling to break above the 200-day exponential moving average (EMA)—a key level often indicating trend reversals. While buyers managed to keep Bitcoin above $85,000, it’s still below the 200-day simple moving average (SMA), around $87,500. This area is strong resistance, and until Bitcoin breaks through, it’s vulnerable to another drop.
The overall market is still uncertain, and momentum seems to be weakening. Despite a bounce after the tariff news, buying hasn’t been strong enough to push the price higher. A decisive move above $90,000 is needed to confirm a bullish trend. If buyers don’t push through, a bigger price drop could happen. Key support is at $81,000, but a break below that could send Bitcoin back to the $75,000 area. Traders are watching closely to see if Bitcoin breaks out or breaks down.
