Bitcoin Price: Is $85,000 Resistance Holding BTC Back or Is a Bullish Breakout Imminent?
As Bitcoin hovers near $83,500, can it push past $85,000 to hit the predicted $120,000? Here’s why BTC’s next move could redefine the market | That's TradingNEWS
Bitcoin Price Forecast: Struggling for Breakout Above $85,000, But Can It Reach $120,000?
Bitcoin Price Continues to Struggle Below $85,000 Resistance
Bitcoin (BTC-USD) has been caught in a consolidation phase, struggling to break above the critical resistance level of $85,000. Despite multiple attempts, Bitcoin has failed to maintain upward momentum, and as of today, it is hovering around $83,768, reflecting a 7.16% increase in the past week. However, this rally remains fragile as Bitcoin faces significant resistance near $85,000. A failure to breach this level has left many traders on edge, unsure whether the current bullish momentum can continue or whether the cryptocurrency will slide back to retest the $75,000 support level.
Bitcoin Faces Headwinds Amid Massive Outflows
Bitcoin’s price action is also under pressure from a massive wave of outflows. According to CoinShares' Digital Asset Fund Flows report, Bitcoin has seen a staggering $751 million in outflows in a single week, marking one of the largest withdrawals this year. This outflow trend indicates a growing sense of caution among institutional investors, which could further suppress Bitcoin’s price. The market sentiment surrounding Bitcoin has been influenced by geopolitical concerns, particularly the U.S.-China trade war and tariffs imposed by President Donald Trump. These factors have contributed to a negative shift in investor sentiment, particularly among large institutional players who were previously bullish on Bitcoin. The most recent outflows suggest that some major players are liquidating their positions, which could further impede Bitcoin’s path to breaking above the critical $85,000 resistance.
Despite the setbacks, Bitcoin still maintains $545 million in year-to-date inflows, indicating some level of long-term confidence in its prospects. However, the rapid outflows and the current market environment present a significant challenge for Bitcoin’s continued growth.
Bitcoin’s Reaction to Geopolitical Events and Market Sentiment
The macroeconomic environment continues to be a major factor influencing Bitcoin’s price movement. The announcement of a temporary suspension of tariffs by President Trump caused a brief relief rally in Bitcoin’s price, showing its increasing correlation with traditional financial markets. The initial surge following this tariff pause saw Bitcoin gaining 8.2% on April 9, aligning with the positive sentiment in global equities. However, Bitcoin’s market performance quickly cooled down as the ongoing trade war and tariff policies remained in the background, keeping the market on edge.
Bitcoin at a Crossroads: Technical Indicators Suggest Limited Upside
Bitcoin’s technical indicators reflect a market at a crossroads. The 200-day Exponential Moving Average (EMA) has been acting as strong resistance, with Bitcoin unable to sustain prices above the $85,000 mark. The Relative Strength Index (RSI), currently hovering around 50, indicates a state of indecisiveness in the market, suggesting that Bitcoin lacks the strong momentum needed for a breakout. For Bitcoin to extend its rally, it needs to breach the $85,000 resistance level on a daily close. A sustained move above this level could open the door for Bitcoin to test $90,000, and potentially even reach the $120,000 mark predicted by crypto analyst Kaduna.
Analyst Predictions: Can Bitcoin Reach $120,000 in the Short-Term?
Bitcoin’s recent price movements have largely aligned with the bullish forecast made by Kaduna, a crypto analyst, who predicted earlier this month that Bitcoin would push above $120,000 due to macroeconomic factors like the U.S. tariff suspension. According to Kaduna’s analysis, the period between April 3 and June 3, 2025, presents a 55-day window for a potential mini bull market. This forecast is supported by Bitcoin’s recent price action, as it has begun to break above local resistance at $84,000 with strong volume support, suggesting the possibility of a bullish breakout. If Bitcoin continues to follow the projected path, it could reach the $120,000 to $125,000 range, validating the analyst’s prediction.
Bitcoin Price Outlook: Bearish Sentiment Amid Institutional Exit
Despite the ongoing bullish predictions, Bitcoin faces massive challenges in the short term. The recent outflows and the lack of institutional support signal that the cryptocurrency may struggle to maintain upward momentum. The price action suggests that Bitcoin is not fully out of the woods, and the potential for further declines remains real. If Bitcoin fails to reclaim $85,000, it could retest lower support levels near $78,258 or even $75,000. Moreover, the general market environment remains uncertain, with geopolitical tensions and trade policy changes potentially continuing to drive volatility in both traditional markets and cryptocurrencies.
Bitcoin and the Growing Influence of Institutional Investors
Bitcoin's correlation with traditional markets has deepened over time, particularly with institutional players becoming more involved in the cryptocurrency market. The rise of Bitcoin ETFs and other regulated investment vehicles has allowed larger institutions to gain exposure to Bitcoin without directly holding the asset. This shift has contributed to Bitcoin’s structural maturity, with volatility showing signs of decreasing as more institutional capital enters the market. This maturation process has also led to tighter bid-ask spreads and reduced gap risks, making Bitcoin more attractive to institutional investors seeking a more stable asset class within the broader crypto space.
Bitcoin’s Path Forward: Resistance Remains Strong
Bitcoin remains in a battle with the key $85,000 resistance level, and until this level is decisively broken, Bitcoin’s price will likely continue to face upward pressure. However, the ongoing trade war and macroeconomic uncertainty are likely to play a critical role in Bitcoin’s ability to gain significant traction. The recent outflows from Bitcoin highlight investor caution and may lead to further volatility. If Bitcoin manages to break above $85,000 in the near term, a rally to $90,000 could follow, but a failure to do so may lead to a retest of the $78,000–$75,000 zone, with potential bearish continuation.
Given the current state of the market, Bitcoin is at a key juncture, with a breakout above $85,000 offering a potential for an explosive rally, while failure to reclaim this level could trigger further downside risk. The outcome of ongoing global trade negotiations and the broader economic climate will be pivotal in shaping Bitcoin's near-term trajectory. Investors should be cautious, as Bitcoin’s market sentiment remains fragile, and future price action will be heavily influenced by external economic factors and institutional sentiment.
