Bitcoin's Price Surges 20% to $80,000 Amid Market Volatility

Bitcoin's price has shown signs of recovery following a significant global market crash, which was exacerbated by a tariff war. The cryptocurrency market began to stabilize as buying pressure increased, pushing Bitcoin's price above $80,000. This surge in buying pressure suggests a potential strong recovery, although the volume dropped by more than 20% to 30%, indicating that bears may have temporarily retreated. If market sentiment remains stable, traders can expect a smooth upswing.

However, the fear among market participants resurfaced soon after Liberation Day, leading to a massive market crash not seen in recent history. Most nations, except for China, aligned with the US, keeping the bearish possibility alive. Even if Bitcoin's price recovers above $80,000 or the crucial resistance at $81,100, it remains uncertain whether the bulls can sustain the rally above these gains.

Bitcoin's recent price action has been highly volatile, marked by massive forced liquidations and cautious institutional sentiments. This volatility has created a wave of mixed signals, keeping investors vigilant. Despite the recovery, Bitcoin continues to trade under a bearish influence within a descending parallel channel. The token has rebounded from the average zone of the channel with a significant increase in buying volume. However, bears are restricting the rally from rising above $80,000, and only a rise above $81,000 could elevate the levels above the bearish influence.

The technical indicators have been flashing mixed signals, keeping the bearish possibilities alive. The recovery has not attracted enough liquidity, as the Chaikin Money Flow (CMF), which is at 0, is about to drop below the levels, which could be a matter of concern. This suggests that bears still possess some strength, which may flip the rally anytime. On the other hand, the Relative Strength Index (RSI) is trying to recover, but until it rises above the Moving Average (MA)-based RSI at 45, the possibility of a breakdown could persist. Hence, Bitcoin's price continues to hold the likelihood of a potential pullback until the resistance at $81,200 is cleared and secured.