Bitcoin Price Faces $87K Dip or $97K Rally—What Happens Next?

Key Insights:

• Bitcoin struggles below $93K amid rising ETF inflows and selling pressure.
• Fear & Greed Index drops despite BTC holding above $90K support.
• Analysts split between $97K breakout and $87K correction risk.

Bitcoin (BTC) price hovered below $93,500 on Apr. 25, struggling to reclaim the yearly open as traders braced for either a new leg up or a deeper correction. The market held its ground near six-week highs, but rising doubts over sustainability have started to weigh on sentiment.

BTC traded around $93,181 at the time of writing, down from a weekly peak of $94,900. The latest market dip pushed Bitcoin as low as $92,000 before bouncing modestly. According to TradingView data, the $93,500 level remained a firm resistance, while CoinGlass identified $93,600 as a key liquidation cluster that could trigger a short squeeze if breached.

Bitcoin Price Support Retest Eyed as Market Cools Off

Traders pointed to weakening sentiment as a precursor to further downside. The Crypto Fear & Greed Index, which reached 72 on Apr. 23, slipped to 60 by Apr. 25, even as BTC stayed above $90,000. Markus Thielen of 10x Research flagged low stablecoin activity as a cautionary signal, suggesting the rally might lack sustainable momentum.

Meanwhile, popular trader Inmortal called for a correction down to $88,000, echoing sentiment from Rekt Capital, who compared current price behavior to mid-2021. Rekt Capital’s weekly chart suggested a potential post-breakout retest at $87,000 if BTC closes below $93,500.

Institutional Demand Remains Resilient

Despite the cautious outlook, institutional interest showed signs of strength. U.S. spot Bitcoin Exchange Traded Funds (ETFs) recorded net inflows of $916.91 million on Apr. 24, capping a three-day streak. According to SoSoValue, this was the third-highest inflow week since ETFs launched in Jan. 2024.

Trader T noted the momentum in an Apr. 25 X post, calling it “one of the strongest ETF inflow weeks” since inception. Concurrently, long-term holders (LTHs) gained $26 billion in April alone, per CryptoQuant, signaling confidence among large investors. The LTH realized market cap grew from $345 billion to $371 billion between Apr. 1 and 23.

Exchange Activity Signals Profit-Taking

While inflows persist, short-term holders have begun to realize profits. According to CryptoQuant, exchange netflows turned positive, with 3,135 BTC deposited as of Apr. 25. Historically, net inflows to exchanges have marked increased selling pressure.

“Fairly normal to have a slight correction here,” said MN Trading founder Michaël van de Poppe, citing profit-taking after a strong breakout. He added that buyers may re-enter soon, pushing toward new all-time highs.

Technical trader Jelle backed the consolidation view, noting BTC had tested weekly resistance. He forecast a potential decline to $91,000 if current levels fail to hold.

Volatility Ahead as Short Leverage Builds

CoinGlass data showed large short liquidations near $93,600, while long positions near $90,000 face elevated risk. CrypNuevo’s liquidation delta analysis flagged an imbalance in long exposure, opening the door for a possible long squeeze if BTC fails to rally.

“All the high-timeframe liquidations we targeted have just been hit,” CrypNuevo posted on X. That included $90,000 as a major zone for both long and short liquidations.

Meanwhile, Bitcoin exchange balances have dropped to a five-year low, according to CryptoRank. This trend often precedes price rallies as fewer BTC are available for sale. Yet, the disconnect between declining exchange supply and falling sentiment suggests caution may persist.

Trump’s Tariff Pivot Fuels Risk-On Trade

The Wall Street Journal reported that U.S. President Donald Trump may cut tariffs on Chinese imports, easing trade war concerns. Asian stocks rallied for a second session on the news, lifting risk sentiment globally.

The Kobeissi Letter noted that equities gained over 1% “on no news at all,” hinting that markets could be front-running a larger announcement. Bitcoin followed suit but decoupled from equities by maintaining a tighter range amid ETF inflows and long-term holding strength.

Bitcoin price appears poised between two key levels: a break above $93,600 could initiate a short squeeze toward $97,000, while a rejection might pull it toward $87,000. Sentiment has cooled, but institutional support and low exchange balances suggest buyers are not far behind.

As Rekt Capital put it, the coming weekly close will likely determine whether BTC retests lower support or resumes its rally.

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.