Bitcoin price has held steady above the $80,000 level despite volatility in global markets. The recent consolidation around $85,000 indicates a shift in investor sentiment, with long-term holders taking control. This resilience comes amid escalating sell-offs in the broader US stock market, driven by tensions in the US-China trade war.
Since Trump’s latest tariff announcement on April 2, Bitcoin has outperformed traditional equities, particularly the S&P 500. While US tech stocks faced declines following tariff-related charges, BTC remained relatively stable. Data shows that Bitcoin has outperformed the S&P 500 by 48.1% in just two weeks, as investors seek shelter in alternative assets like Bitcoin amidst market turbulence.
Technical analysis suggests that Bitcoin is poised for a breakout towards $87,000, as it consolidates just below the midline of the Bollinger Bands. The recent stability above $85,000 and consolidation in tight daily ranges indicate bullish momentum. While the volume delta remains neutral, the narrowing bands signal an incoming volatility expansion, potentially leading to an upward breakout towards $87,000 and beyond.
Investors view Bitcoin as a hedge asset, especially during equity market sell-offs. With $82,680 acting as a pivot level, the path of least resistance for Bitcoin remains upward. However, failure to hold above this level could lead to a retracement towards $80,000. Overall, the current market conditions favor Bitcoin, with strong US jobless claims data and rising political pressure for rate cuts supporting its bullish positioning.
In conclusion, Bitcoin’s resilience above $80,000 amidst global market volatility indicates a shift in investor sentiment towards the digital asset. The outperformance of Bitcoin compared to traditional equities since Trump’s tariff announcement highlights its potential as a hedge asset. Technical analysis suggests that Bitcoin is likely to break out towards $87,000, with strong support at key pivot levels. As macroeconomic conditions remain favorable for alternative assets like Bitcoin, investors may continue to see it as a safe haven amidst market uncertainty.
