Reaching 91,500 will confirm trend of Bitcoin recovery

The Bitcoin prices reached a local low of around 77,000, which the upward rebound started from. The major cryptocurrency’s price recovery is within the short-term uptrend, the next target of which will be the rise to 91,500. It used to be a strong support level, but now it can become a serious resistance in the bulls’ way. At the same time, traders have so far bought back only 30% of the price drawdown in February and early March, which means there is still significant upside potential for BTCUSD. 

Bloomberg reports that after a five-week-long liquidity outflow, the situation in the cryptocurrency market has finally changed for the better. Last week, Bitcoin ETFs attracted more than $740 million, breaking the worst streak since their launch last January. CryptoQuant analysts also highlight the record open interest in futures contracts on the major cryptocurrency. It has exceeded $32 billion, reflecting capital inflows from bitcoin buyers.

Co-founder of BitMEX Arthur Hayes expects BTCUSD to gradually return to its all-time highs and to rise to $110,000. In his opinion, this process will be driven by the slowdown (and in the future, the end) of quantitative tightening by the Fed. Moreover, if the US central bank starts quantitative easing, bitcoin can repeat the rally of 2020–2021, when it rose nearly 1,000%. 

Markus Thielen from 10x Research reports that Bitcoin transactions fell from $87 billion to $42 billion over the past month. This is a clear sign that investors prefer keeping Bitcoin in their wallets rather than selling it as soon as possible. The US administration’s softer stance on import tariffs can improve the demand for high-yielding assets, and cryptocurrencies will be one of the main beneficiaries of this process.

Despite the two-week growth of BTCUSD, the RSI has not entered the overbought zone yet. Hence, the prices have no technical obstacles to reach the level of 91,500.

Consider the following trading strategy:

Buy BTCUSD at the current price. Take profit – 91,500. Stop loss – 83,000.