Bitcoin Surges 20% to 94,000 on US-China Trade De-escalation, Institutional Demand

Bitcoin has recently experienced a significant surge, reaching a six-week high of 94,000, marking a 20% increase from its low of 74,400 on April 7. This rally is not isolated to Bitcoin, as other major cryptocurrencies such as BNB, XRP, Ethereum, and SOL have also seen substantial gains. The total crypto market capitalization has risen to 3 trillion for the first time since early March, driven by a broader risk-on sentiment in global markets.

One of the key drivers of this sentiment is the recent de-escalation in trade tensions between the US and China. This has led to a rally in risk assets, including Bitcoin, which has risen above 94,000. Additionally, the swearing in of Paul Atkins as the new SEC Commissioner has been seen as a positive development for the crypto industry. Atkins, an active cryptocurrency supporter, has stated that his top priority would be to establish a firm regulatory foundation that is rational, coherent, and principled.

The crypto market has also been supported by a wave of short liquidations, with over 617 million in positions liquidated in the past 24 hours. This marked the biggest short squeeze so far this year. Institutional demand for Bitcoin has also returned, with BTC ETFs seeing 936.43 million in net inflows on April 22. This marks the largest daily BTC ETF inflow since the day President Trump took office and Bitcoin surged to a record high. Signs of renewed institutional interest come as Bitcoin ETFs flip back to net inflows after a period of significant outflows.

Technically, BTC/USD has extended its recovery from 74,400, rising above key resistance levels such as the multi-month falling trendline dating back to the 109,500 all-time high, the 50 and 200 SMA, and 90,000, to reach its peak of 94,000. This, combined with the RSI above 50, keeps buyers optimistic of further gains. The next key level for the bulls is the 100,000 psychological level. A rise above 100,000 would bring 105,000 into focus ahead of 109,500 and fresh record highs. On the downside, immediate support is at 90,000, the round number, and the 100 SMA. Below here, the 200 SMA comes into focus at 88,500. A break below 85,000 would negate the near-term rise and bring 80,000 into play.

If Bitcoin price holds above 90,000 for the next few sessions, the 95,000–97,000 zone is the next critical target. This week's market recovery has seen Bitcoin surge over 10% to retest a key barrier for the first time in weeks. The chart indicated continued strength, with three price targets: 131,500, 144,900, and 166,700. This Wyckoff pattern suggests that Bitcoin could continue to rise in the near future.

A widely followed crypto analyst believes that Bitcoin’s latest breakout is the start of a larger uptrend that will lead to new all-time highs. In a thread, crypto trader Michaël van de Poppe tells his followers that Bitcoin will likely consolidate for a while in the 90,000 range before continuing higher. “Solid upwards trend, break 87,000 and we’ll test 92,000-94,000 for Bitcoin. That’s what we’re seeing right now. This is the area for a short-term top and some consolidation (between 93,500-95,250). Great signs on the board. It’s very likely that we’ll start the uptrend to an ATH (all-time high).” Bitcoin is trading for 93,608 at time of writing, up marginally on the day.

Next up, the analyst says that the Ethereum/Bitcoin pair (ETH/BTC) is showing a bullish divergence on the daily chart. A bullish divergence, which suggests price will start to increase, occurs when the price of assets records lower lows while indicators, such as the Relative Strength Index (RSI), a momentum oscillator indicator, are witnessing higher lows. “A potential bullish divergence on ETH. On lower timeframes: reclaim within the range against Bitcoin. On the day that gold provides a wick and seems likely to have peaked short-term. As long as it holds ~1,820 sats, I think we’ll attack 2,000 sats in the coming days.” ETH/BTC is trading for 0.01918 BTC (1,793) at time of writing, up 1.75% in the last 24 hours.

According to the analyst's forecast, Bitcoin is expected to consolidate in the 90,000 range before continuing its upward trend. The next key levels for Bitcoin are 92,000-94,000, where it may experience a short-term top and some consolidation. The analyst believes that this consolidation will likely lead to a new all-time high for Bitcoin. The Ethereum/Bitcoin pair is also showing signs of a bullish divergence, which could lead to an increase in the price of Ethereum relative to Bitcoin. The analyst predicts that Ethereum could reach 2,000 sats in the coming days if it holds above 1,820 sats.