Bitcoin has begun a rally in Q2, showing significant growth after a ten-week downtrend that started on January 20, when the price peaked at $110,000.
Bitcoin Rally: Spot Traders Boost Momentum
In March, there was a notable difference in trader activities on Binance and Coinbase. While Binance traders aggressively sold BTC, Coinbase saw significant spot bids around the $80,000 level. By early April, traders on both platforms had turned more bullish, fueling the current rise.
Bitcoin Breaks Key Resistance Level
From a technical perspective, Bitcoin has surpassed an important resistance range of $84,000 - $85,000 and established a bullish position above the 50-day, 100-day, and 200-day exponentially moving averages. However, prices might face challenges in overcoming the $87,700 - $88,700 range.
Outlook and Cautions for Bitcoin Market
Consolidation above the current levels could lead to a $90,000 retest for the first time since March 7. However, an immediate correction to the current support at $84,000 - $85,000 might deter bulls, allowing short sellers to strengthen their positions, especially if prices fall below $85,000 in the coming days.
Bitcoin shows positive momentum, but the market remains susceptible to volatility. The market is expected to react to further economic events and statements, such as the upcoming White House address.
