The bitcoin price is showing strength mimicking the rising stocks, with BTC traders hoping for a resumption of support at the USD 90,000 level. The gains in bitcoin price suggest a classic April comeback. Data from KMC and TradingView showed that BTC/USD held firm at the day’s open. US equities started the day with a modest rise, continuing a recovery that finally gave traders a long-needed reason for optimism.
Trump’s comments on tariffs calmed the markets
Signals from the U.S. government and President Donald Trump regarding planned trade tariffs set to take effect on April 2 were a key factor that halted the decline in risk assets. Risk assets experienced one of their strongest days this year, which supported a temporary easing of concerns around the April 2 deadline for the tariffs to be implemented. Trump twice hinted on Monday that trading partners may get exemptions or tariff cuts, providing relief and calming jittery markets.
“The second quarter, particularly April, has historically been one of the best periods for risk assets, right after December’s holiday surge. The S&P 500 Index posted an average annual return of 19.6% in the second quarter, while bitcoin posted the second-best average performance in the period – again, only in the fourth quarter.” Summarized by trading firm QCP Capital. Expectations for April are high among bitcoin market participants given the historical trend of strong price performance.
Bitcoin is facing a significant liquidity selloff
Traders are increasingly focusing on the USD 90,000 intraday level when analyzing the short-term movement of the bitcoin price. Bitcoin is still trading at a solid premium price during this rebound, as Daan Crypto Trades trader stated in one of his recent posts on X. If this can be sustained and bitcoin slowly returns to its previous range above USD 90,000, a move to new highs can be expected. However, at the moment we are still facing strong resistance and the price continues to show a correlation with equities.
CoinGlass, meanwhile, pointed to the ongoing liquidity selloff just below the USD 90,000 mark, which was previously attributed to market manipulation by a trader nicknamed Spoofy the Whale. Keith Alan, co-founder of trading platform Material Indicators, who coined the term, said that this entity alone keeps the price around USD 87,500. This week, Alan said the next important level that will turn into support is the annual opening price of just above USD 93,000 . He warned that if this does not happen, it could still lead to a return to multi-month lows.
