Key Insights:
- Bitcoin faces key resistance between $88K and $91K.
- Liquidity, tariffs, and weak dollar drive BTC demand.
- Influencers target $150K; eyes on May FOMC meeting.
Bitcoin price climbs above $87K amid renewed liquidity and gold’s historic rally. But $91K remains a key hurdle, with bulls eyeing $150K and analysts warning of short-term volatility.
Bitcoin Price Hits Resistance as Bulls Eye New Highs
Bitcoin (BTC) traded above $87,000 in the Asian session on Apr. 21, marking its highest price since early Apr. The climb followed renewed interest in hard assets amid inflation concerns and the weakening U.S. dollar.
Ali Martinez noted BTC faces three technical resistances between $88,000 and $91,000: the 200-day and 100-day moving averages, and the mid-level of its consolidation channel. These levels may form a barrier before any move toward six figures.
Data from CryptoQuant showed declining exchange inflows, suggesting less intent to sell. Open interest surged by $6 billion in two weeks, while funding rates rose. The combination pointed to increasing long exposure among traders.
Liquidity Shift Sparks Bitcoin and Gold Rally
Vincent Liu, chief investment officer at Kronos Research, said the Bitcoin rally stemmed from “rising global liquidity, fueled by an expanding M2 money supply.” He added that a weakening U.S. dollar has driven capital into hard assets like Bitcoin and gold.
Gold surged to a new all-time high of $3,400 per ounce on Apr. 21, pushing its year-to-date gains to 29%. According to Trading Economics, the rally coincided with the U.S. Dollar Index (DXY) falling to 98.5, its lowest level since Feb. 2022.
Liu cautioned that future BTC gains may hinge on the outcome of the Federal Reserve’s May 6–7 policy meeting. A dovish tone could support further inflows, particularly if paired with clearer guidance on President Trump’s shifting trade policies.
Ryan Yoon, lead research analyst at Tiger Research, attributed the recovery to Trump’s April tariffs, which triggered a correction and later fueled a sentiment rebound. He pointed to key indicators like the Fear & Greed Index and S&P 500 RSI(14), which bottomed out during the correction and hinted at a shift toward Bitcoin as a preferred hedge.
Bullish Sentiment Builds Despite ETF Headwinds
Bitcoin’s futures open interest has risen by $6 billion in two weeks, according to CryptoQuant. At the same time, exchange inflows declined, signaling reduced intent to sell and strengthening the case for continued accumulation.
BTC spot ETFs recorded $12.7 million in net inflows last week, the lowest of the year, but still a reversal from prior outflows. Institutional appetite remains tepid, but analysts see a slow return of confidence.
QCP Capital noted in its Apr. 21 market note that “the narrative of BTC as a safe haven is gaining traction again.”
They added that this perception could create a tailwind for institutional allocation—especially if gold continues rising in parallel.
$150K Target Emerges—but Depends on the Fed
Crypto analyst CryptoELlTES posted that “Bitcoin’s journey to $150,000 has officially begun,” urging followers to “buy the fear” ahead of what they believe is an incoming vertical rally.
Similarly, Danny_Crypton claimed the “biggest Bull Run in history begins on May 1.” He described the recent price bounce as a bullish retest that sets the stage for a V-shaped recovery and a rapid move toward $150,000. He further argued that low-cap altcoins would follow shortly after, calling the coming weeks a key moment for outsized crypto gains.
Still, Kronos’ Liu cautioned against premature celebration.
“Everything depends on the May 6–7 FOMC meeting,” Liu said. “A dovish Fed could sustain inflows, while clear trade guidance may stabilize broader markets.”
Bitcoin price bulls remain focused on $91,000. A decisive break above it could clear the way toward six-figure targets—but macro uncertainty remains a powerful headwind.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
