Bitcoin Surges 20% to Six-Week High Amid Trade War Tensions

Bitcoin (BTC) reached a six-week high on April 22, as tensions from the US trade war bolstered confidence among crypto bulls. Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD surpassed $91,000 following the Wall Street open, marking its highest point since March 7. This surge was driven by increasing market anxiety over potential responses from China, Japan, and other nations to US trade tariffs. Gold also benefited from this market nervousness, setting new all-time highs.

For traders, the 200-day simple moving average (SMA) at $88,370 became a critical level to reclaim as support on daily timeframes. Popular trader Daan Crypto Trades noted that Bitcoin was approaching the significant $90,000-$91,000 horizontal area, which had previously acted as a range low. To confirm the moving average reclaim, Bitcoin needed to surpass the area around $93,000, which is Bitcoin’s yearly open.

Keith Alan, co-founder of trading resource Material Indicators, shared similar views. He emphasized the importance of watching for fake outs and confirmations, stating that the confirmation of the trend reversal would come when BTC reclaims the Yearly Open. This move would put the price on a trajectory to unwind key moving averages and deliver a series of Golden Crosses in the days and weeks ahead.

However, not all traders were convinced of the sustainability of the short-term BTC price swing. Roman, another trader, expressed caution, noting that the price was retesting prior support as resistance. He advised waiting for the weekly close before making assumptions, highlighting the frequency of fakeouts in the past. Roman suggested that a breakout above $93,000 would be beneficial for bulls but remained uncertain about its likelihood.

Ecoinometrics, a popular analytics resource, also expressed skepticism. They acknowledged that while Bitcoin was climbing, the Nasdaq 100 index was sliding, a divergence that historically does not last. Ecoinometrics summarized that when the Nasdaq’s 200-day moving average trend is down, Bitcoin encounters macro headwinds, suggesting that the current rally might face challenges.