As of the 22nd, Bitcoin (BTC) price has broken through $90,000, bringing considerable confidence to everyone.

1. Background and Driving Factors Behind Breaking $90,000:

1 Revival of the 'Digital Gold' Narrative:

◦ Global economic uncertainty is increasing, and the high tariff policies implemented by the Trump administration (such as tariffs on China reaching 104%) have raised inflation expectations, causing the US dollar index (DXY) to fall to a three-year low, prompting investors to seek inflation-resistant assets.

◦ Gold prices have reached new highs, with an increase of 25% this year, while Bitcoin is favored again as 'digital gold' due to its fixed supply (21 million coins) and decentralized characteristics.

◦ Bitcoin is exhibiting characteristics of a safe-haven asset.

2 Institutional Capital Inflow:

◦ Bitcoin ETFs continue to attract capital inflows. According to Coinglass data, last week the net inflow into Bitcoin spot ETFs was $744 million, showing strong institutional demand.

◦ Bernstein analysts predict that by the end of 2025, Bitcoin ETFs will account for 7% of Bitcoin's circulating supply, and assets under management (AuM) could reach $190 billion.

◦ Institutional adoption (such as BlackRock and Fidelity) and companies like MicroStrategy increasing their Bitcoin holdings (recently purchasing 330 BTC by the Japanese company Metaplanet) further boost prices.

3 Technical Support:

◦ On the daily chart, Bitcoin has broken through short- and medium-term moving averages, with the candlestick showing four consecutive bullish days, MACD rising above the zero line, and volume increasing, indicating strong bullish momentum. If it stabilizes above $90,000, the correction may end, and the trend will reverse.

◦ Technical indicators show that the Relative Strength Index (RSI) is at 58.80, in a neutral range, suggesting the market is not overheating; the 50-day moving average ($84,642) and the 200-day moving average ($86,317) are both trending upwards, supporting a bullish outlook in the medium term.

◦ After breaking $90,000, the next resistance level is around $91,000 to $92,000.

2. Market Sentiment

• Bullish Sentiment Running High:

◦ The current bullish trend is strong, and after a correction, Bitcoin is expected to stabilize above $90,000, suggesting waiting for a correction before entering long positions.

◦ In a bull market, sharp declines often present opportunities for institutional accumulation, reflecting confidence in long-term price increases.

◦ At the same time, the CRSI (Composite RSI) indicates overbought conditions, and profit-taking may occur, so short-term caution is needed for corrections.

◦ Short-term contract trading carries high risks, while holding spot is more stable; it is advised to reduce positions for contract profits.