Bitcoin gains 2% this week, doubling its two-week growth but still struggles below $90K.
Analysts caution that Bitcoin’s rally may be short-lived due to bearish momentum and key resistance levels.
Bitcoin (BTC) has shown some signs of recovery this week, giving a much-needed breather after recent market struggles. However, experts caution that this upward trend might not hold for long.
Over the past week, BTC has gained 2%, with its two-week gains more than doubling. Despite these positive signs, analysts remain cautious. Fairlead Strategies’ founder, Katie Stockton, noted that while the relief rally could last another one or two weeks, Bitcoin’s overall momentum is still pointing downward. This means the current bounce might not be sustainable in the long run.
As of now, Bitcoin is trading at $86,871, which is a 1.34% dip from its intraday high of $88,040. Trading volume has also dropped by over 10%, standing at $25.44 billion, as per CoinMarketCap data.
One encouraging factor is the continuous inflow into Bitcoin spot ETFs. For the past nine days, these funds have attracted fresh capital, totaling $944 million since last Friday, according to SoSo Value. Institutions are also showing greater trust in Bitcoin—GameStop recently added BTC to its reserves, following the example of MicroStrategy.
Bitcoin’s Resistance Levels and Technical Outlook
BTC has struggled to reclaim the $90K mark since it fell below $91K on March 7. Since then it has been fluctuating between $81K and $88K facing repeated resistance near $88.5K to $89K.
Technical indicators offer mixed signals. Bitcoin is currently below its 9-day and 21-day Exponential Moving Averages (EMAs), signaling short-term bearish pressure. However, staying above the 50-day EMA keeps its long-term trend intact. The Relative Strength Index (RSI) at 54.21 suggests neutral-to-slightly bullish momentum, indicating that a breakout is still possible if buying pressure increases.
Meanwhile, the Moving Average Convergence Divergence (MACD) shows bearish momentum, while the Chaikin Money Flow (CMF) suggests a phase of market consolidation, meaning neither buyers nor sellers are in full control.
For Bitcoin to confirm a bullish breakout, it needs to push past $88,135 (a key Fibonacci resistance) and then cross $91,672. If it succeeds BTC could see a strong rally. On the other hand, if it fails to hold above $85,000, it could decline further, with the next major support at $75,125.
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