Bitcoin Price Approaches $90K: Is This the Start of a New Rally?

Bitcoin Rebounds to $90K: Can It Maintain Momentum?

Bitcoin (BTC-USD) has seen significant volatility in the past week, surging from $85,000 to $95,000 on Sunday after Trump’s announcement of a U.S. strategic crypto reserve. However, BTC retraced back to $87,000 before rebounding toward $90,000 on Wednesday. This price action suggests a strong support zone near $85,000, but resistance at $95,000 remains a key hurdle.

With the crypto market now back above a $3 trillion valuation, fueled by institutional buying, weakening dollar strength, and regulatory clarity expectations, Bitcoin is once again positioned for a possible breakout. But can BTC sustain these gains, or will selling pressure return?

The Role of the U.S. Dollar in Bitcoin’s Price Action

A major factor influencing Bitcoin’s recent price swings is the decline of the U.S. dollar. The Dollar Index (DXY) has dropped below 105, accelerating its downtrend after peaking at 110 in January following Trump’s election victory. Historically, a weaker dollar benefits Bitcoin and other cryptocurrencies, as investors hedge against fiat depreciation.

This trend suggests that capital is shifting into alternative assets, including Bitcoin and gold, as traders anticipate looser monetary policy. If the dollar continues to weaken, BTC could push toward the $100,000 mark.

Trump’s Tariff Policies and Their Impact on BTC

One of the biggest uncertainties in financial markets has been Trump’s aggressive tariff policies. Fears of a trade war pushed Bitcoin below $80,000 at the end of February, as investors worried about economic slowdowns. However, recent reports suggest Trump may ease tariffs, especially if the dollar continues to fall.

If tariffs are lifted or reduced, it could create a bullish environment for Bitcoin, as improved global trade conditions may restore risk appetite among institutional investors.

Bitcoin ETFs: Institutional Buying Remains Strong

While Bitcoin has faced a choppy trading week, spot Bitcoin ETFs continue to see demand. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin ETF (FBTC) have led the way in attracting inflows, despite some profit-taking.

With Bitcoin ETFs now holding over 600,000 BTC, institutional adoption remains a key driver. If inflows continue, BTC could reclaim $100,000+ levels in the coming months.

Technical Analysis: Can Bitcoin Break Past $95K?

Bitcoin is now approaching the critical $95,000 resistance level, where selling pressure has emerged multiple times. Key levels to watch include:

• Support at $85,000: Holding above this level keeps Bitcoin in a bullish structure.
• Resistance at $95,000: A breakout here could send BTC toward $100K-$110K.
• 50-Day EMA at $90,500: If BTC reclaims this moving average, the next leg higher could begin.

The Relative Strength Index (RSI) sits at 41, suggesting that Bitcoin is neither overbought nor oversold. If buying momentum increases, BTC could retest its all-time high of $105,000.

Bitcoin’s Path to $100K: Is It Inevitable?

While Bitcoin has shown strong resilience above $85,000, breaking past $100,000 will require a major catalyst. Potential triggers include:

• Weaker U.S. Dollar: A continued drop in the DXY index could send BTC higher.
• Institutional Demand: More inflows into spot Bitcoin ETFs will drive price appreciation.
• Regulatory Clarity: If the White House Crypto Summit provides a clear framework for digital assets, Bitcoin could see renewed institutional adoption.

If BTC holds $85,000 as support and pushes past $95,000, expect a strong rally toward $100K-$110K. However, failure to break resistance could lead to a short-term pullback to $80K.

Final Thoughts: Is Bitcoin a Buy, Hold, or Sell?

Given the current market structure, Bitcoin remains in a bullish trend despite recent volatility. Long-term investors may consider holding or accumulating BTC, while traders should watch for a break above $95K before entering new positions.

The next few days will be crucial, especially as Trump’s crypto reserve plans and macroeconomic factors shape Bitcoin’s trajectory. If bullish momentum continues, BTC could reach new all-time highs in 2025.

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