Bitcoin Nears $90,000 as Market Sentiment Improves 2%

Bitcoin's price continued its upward trajectory on Monday, nearing a critical resistance level around $90,000 as broader market concerns began to dissipate. The total market capitalization of cryptocurrencies rose by approximately 2% to $1.74 trillion, reflecting a positive shift in investor sentiment. The Crypto Fear and Greed Index climbed 15 points to 45, indicating a significant improvement in trader sentiment, although it remained in the 'fear' territory.

Several altcoins also posted modest gains, but the overall momentum remained largely concentrated in Bitcoin. The leading altcoin gainers for the day included SPX6900, Fartcoin, and Render. SPX6900 (SPX) rose 25% over the past day to a three-week high of $0.629, with its market cap seated at $580 million. The daily trading volume for SPX jumped 146% over the period to $42.52 million, indicating heightened interest among traders. Fartcoin (FARTCOIN) rallied 24% to an intraday high of $0.631 with its market cap rising to $610 million. Render (RENDER) jumped 15.7% in the past day, trading at $3.85 at the time of writing, with a significant spike in daily trading volume from $36.5 million to $120 million.

Bitcoin's price has been moving sideways in a wide range between $76,600 and $87,500 since March 11. One analyst suggested that Bitcoin needs to break above $90,000 soon, or this choppy phase could drag on longer. Currently, the price is hovering in the middle of the range, with no clear direction. If Bitcoin manages to reclaim the previous range between $90,800 and $108,500, sentiment and momentum could flip bullish again, potentially opening the door to new highs. If that doesn’t happen, the $73K–$74K zone is the next major level to watch. In the long term, the analyst remains bullish and sees the recent correction as a normal pullback in an ongoing bull cycle.

Several bullish catalysts remain in Bitcoin’s favor. Bitcoin’s funding rates are around 0%, indicating indecisiveness in the market. When funding rates are neutral, there’s little cost to holding positions, which takes pressure off both longs and shorts. This can help stabilize prices in the short term, reducing volatility and keeping Bitcoin in a consolidation phase. Sentiment is starting to tilt in Bitcoin’s favor as broader macro conditions shift. The Federal Reserve has signaled it may pause further rate hikes for now, giving markets more room to breathe. Additionally, signs of strong accumulation are starting to show. A large transfer of 10,000 BTC—worth roughly $842.9 million—from exchanges to self-custody wallets was described as “strongly bullish,” noting that large outflows like this often signal that investors are planning to hold for the long term. With fewer coins available on exchanges, selling pressure tends to drop, which could support a move higher if momentum picks up.

Another bullish case was presented by an analyst who pointed out that the M2 money supply just hit a new all-time high. Historically, every time this has happened, Bitcoin has followed up with a new high of its own within 8 to 12 weeks. Based on that pattern, the analyst believes the chances of Bitcoin reaching a fresh all-time high by April or May are pretty strong. A chart shared by the analyst suggested a high of around $123,000 by mid-July. Over the short term, Bitcoin is now testing a key level around the $88,000–$89,000 range—the 21-week EMA, which is often seen as critical support in bull markets. If BTC can reclaim this area as support, it could open the door for a breakout toward $93,500. When writing, Bitcoin was changing hands at $87,743, up 3% in the past 24 hours.