On April 13, Bitcoin (BTC) reached an eleven-day high of $86,000, driven by a positive shift in U.S. financial policy as traders responded to developments surrounding trade tariffs. This surge has sparked discussions about the potential for increased volatility in the cryptocurrency market.
According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair showed significant gains due to the announcement by President Donald Trump to exempt specific tech products from trade tariffs against China. While this announcement gave Bitcoin a boost, the cryptocurrency subsequently saw a decline to below $84,000, a common occurrence during weekends when liquidity is generally lower.
Focus on Market Volatility
As we approach the weekly close, Bitcoin remains up 7% for the week, recovering from initial losses earlier in the week. However, traders are advising caution, with concerns about the stability of this price increase. One trader expressed doubts about the breakout, citing low trading volume and an overbought condition as potential indicators of imminent correction.
“Call me crazy but I don’t think I trust this breakout on $BTC. Low volume, overbought stoch, and on a weekend,” tweeted one trader.
Several analysts have pointed to the importance of the 200-day exponential moving average, currently sitting around $85,000. This level will be crucial as Bitcoin attempts to secure its position above it going into next week.
Long-Term Insights
While some traders are identifying short-term hurdles, well-known analyst Peter Brandt described the recent price rebounds as corrective rather than impulsive. This viewpoint highlights the challenges that remain for Bitcoin to achieve a sustainable bull market.
Rekt Capital noted that Bitcoin has closed above its long-term downtrend, but emphasized the need for confirmation through successful retesting of this level. Such critical movements in the market are particularly timely as we await significant tech earnings and additional news concerning tariffs.
RSI and Future Trends
On a technical level, Bitcoin’s relative strength index (RSI) has registered a bullish divergence. This classic leading indicator has historically suggested upward reversals when similar patterns have occurred. As Rekt Capital described, if Bitcoin can maintain these bullish signals while managing price lows, we could see positive trends ahead.
This article does not constitute financial advice. Readers are encouraged to conduct thorough research before making any investment decisions.
