Bitcoin (BTC) has recently shown signs of rebounding after a massive bloodbath in the crypto market. Here's what's happening:
Current Market Situation
- BTC price recovered from a weekly low of $74,000 and gained a hold above $84,000.
- Other major tokens like ETH, SOL, and XRP also illustrated a price rebound, with gains of 2-7% in the interim.
- The rebound comes after a massive sell-off triggered by Donald Trump's tariff policies and macroeconomic uncertainty.
Factors Driving the Rebound
- *US CPI Data*: A cooler-than-expected US CPI reading of 2.4% in March offered some relief to the crypto market.
- *Tariff Policy Update*: Trump's announcement to exempt tech products from China tariffs and a temporary halt on newly imposed tariffs have lessened trade war tensions.
- *Whale Activity*: Rising whale activity across the broader crypto market signals renewed market interest amid price recovery.
Expert Predictions
- Some analysts predict a potential crash before a rebound, citing technical patterns and market forces.
- Others believe Bitcoin will recover in the long run, driven by increasing institutional adoption, regulatory clarity, and the upcoming Bitcoin halving.
- Mike McGlone, Bloomberg Senior Commodity Strategist, predicts a potential drop to $10,000, citing speculative excess and macroeconomic reset ¹ ² ³.
Key Levels to Watch
- $70,000-$74,000 zone: A significant support area that could determine the next direction of BTC price.
- $59,000: The lows from October last year, which could be a potential support level if BTC price drops further.
- $53,500: The lows from July to September, marking the starting point of the most recent rally ³.
