Bitcoin (BTC) finds itself at a critical inflection point today. It needs to retake an important support level soon or it risks all time new local lows, according to Crypto Market Analysis. This all comes as BTC/USD broke above $88,772 on Bitstamp, its highest price since March 7. The market simply is adjusting to the broader economic picture. It has an uncanny eery correlation to the direction of both the S&P 500 and Nasdaq Composite, as well as the recent increases/decreases in US trade tariffs.
The cryptocurrency’s recovery is being closely scrutinized amid a backdrop of traditional market volatility. At the time that I’m composing this, the S&P 500 is up 1.6%. At the same time, the Nasdaq Composite index is up 2%, reflecting strong risk appetite in the overall financial market. The US government has agreed to do all it can to alleviate the harshness of new trade tariffs. This decision, originally scheduled to be implemented on April 2, provides powerful market-positive momentum.
Technical Analysis Points to $93,300 as Critical
Keith Alan, co-founder of trading resource Material Indicators, says the 2025 yearly open is key. He calls it an inflection point for BTC/USD, and he's calculated its value at approximately $93,300. Alan helped make the case for retaking this high water mark in his recent market snapshot.
Until the yearly open is reclaimed, there is an increased likelihood that price will retest the lows.
On March 24, as the Trump Administration’s rationale for reopening America began to materialize, Alan provided an unnerving analysis. He cautioned against “mixed indications” for BTC/USD as it neared $90,000 during Wall Street’s opening. The 21-day simple moving average (SMA) is $84,674.
If/when that happens, I'll be buying those dips when buying resumes.
Market Reacts Positively to Easing Trade Tariffs
This US government initiative, which is designed to make it easier for companies to trade across borders, has been greeted with open wallets by investors. Additionally, this decision is viewed as a big win that will help to ease economic pressures and create a healthier market ecosystem.
Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, considers easing trade tariffs a positive move. He argues this change will do a world of good for the economy. The US government's easing of trade tariffs was a key factor in the market's positive reaction.
Implications for Bitcoin's Near-Term Trajectory
Technical indicators combined with macroeconomic factors are creating a perfect storm that is affecting Bitcoin’s near-term path. BTC/USD is otherwise at risk of further losing its upward momentum unless it reclaims $93,300. If it is unable to do so, the crypto can be in for an imminent correction. Market participants have their eyes fixed on these exciting advances, straddling the line between optimism and caution as they seek opportunities in this new environment.
