Trump’s one sentence sparked a Bitcoin blowout surge! After breaking through a key hurdle, Bitcoin’s next target could be as high as $98,000
On Tuesday, Bitcoin tested a key level that analysts say has become a barrier to further upside gains for months.
Analysts said this puts the pioneering cryptocurrency on the verge of a breakout, and once it breaks through effectively, its price could again move back toward six figures. As signs of easing between the U.S. and Iran emerge and market risk appetite quickly rebounds, Bitcoin surged strongly over the past 24 hours, at one point breaking through the $76,000 level.
Bitcoin tested a key level on Tuesday (4月14日), which analysts say has become a barrier to further upside gains for months. Analysts said this puts the pioneering cryptocurrency on the verge of a breakout, and once it breaks through effectively, its price could again move back toward six figures.
As signs of easing between the U.S. and Iran emerge and market risk appetite quickly rebounds, Bitcoin rose sharply over the past 24 hours, at one point breaking through the $76,000 level, with its gains clearly outperforming the broader rebound in risk assets.
The key catalyst that ignited the move came from developments in the Middle East.
Earlier, U.S. President Trump sent signals that Iran may be willing to hold peace talks, and the market immediately bet that geopolitical tensions could cool. Trump told the New York Post that in the next two days “there may be more negotiations,” with the location being Pakistan. Trump said, “You’d better stay there, because something might happen in the next two days, and we would rather go there.”
As a result, Brent crude oil prices fell back below $100 per barrel, inflation worries eased at the margin, and concerns about the Federal Reserve maintaining high interest rates also cooled, as funds began to flow back into risk assets such as stocks and cryptocurrencies.
According to FactSet data, on Tuesday the world’s largest cryptocurrency, Bitcoin, traded at a high of $76,094 before then pulling back to about $74,333 in the afternoon.
Katie Stockton, founder and managing partner of Fairlead Strategies, said Bitcoin briefly broke through the key resistance level at $75,200. Stockton used a daily cloud model to identify this key technical obstacle, an indicator widely used among technical analysts.
For Bitcoin, which has been in a bear-market range since last November and is still more than 40% below its all-time high of $126,272.76 set on October 6, whether it can hold above this level is crucial.
Typically, a bear market is defined as a decline of 20% or more from recent highs. Stockton and other technical analysts noted that if Bitcoin can continue to hold above $75,200, it could mean that after months of pressure, it has finally regained momentum. But if it falls back again, that would suggest many investors are still viewing the gains as an opportunity to sell.
Watch whether Bitcoin can continue to hold above $75,200.
In an interview with MarketWatch, Stockton said that if Bitcoin can “hold above $75,200 for a few days—unlike the similar breakout attempts in mid-January—that would mark a short-term breakout.” In this case, Bitcoin’s near-term outlook would improve, and the next level to watch is $98,200
Another technical indicator provided by Tyler Richey, a technical analyst and co-editor at Sevens Report Research, also suggests that Bitcoin’s technical setup is starting to look more attractive. Richey told MarketWatch on Tuesday, “The risk-reward ratio for buying or adding to Bitcoin is significantly improving right now.” He pointed out that if Bitcoin futures can confirm a breakout above $74,685, the cryptocurrency could quickly move up to $83,190 next.
After that, investors should turn their attention to the second target at $92,000. However, if Bitcoin futures fail to break through this level, it would mean that too many investors still believe downside risk outweighs short-term upside potential.
Richey wrote, “This kind of failure may not necessarily be a bearish signal, but it will keep the strategic technical outlook neutral for a period of time.”
On Tuesday, major U.S. stock indexes rose, sending strong technical signals. According to Dow Jones market data, the Dow Jones Industrial Average closed up 0.7% on Tuesday. The S&P 500 index closed at its highest level in two months, less than 0.2% below its all-time closing high. The Nasdaq Composite recorded its 10th consecutive day of gains, the longest streak since November 2021.
