Bitcoin Surges 4.5% to $88,724, Analyst Warns of $90,000 Resistance

Bitcoin (BTC) has recently surged to approximately $88,724, marking a 4.5% increase in the past 24 hours. This price movement has sparked excitement within the crypto community. However, EGRAG Crypto, a respected cryptocurrency analyst, has urged investors to exercise caution. In a recent post on X, EGRAG Crypto advised that investors should not start celebrating until Bitcoin closes above $90,000.

The analyst highlighted that $90,000 is a crucial resistance level for Bitcoin. Historically, Bitcoin has struggled to break past this level, making it a significant test for bullish momentum. Round numbers tend to influence trader sentiment, and a clean break above $90,000 could spark a new wave of buying pressure. A sustained close above this level would validate a stronger uptrend, increasing confidence in Bitcoin’s long-term bullish outlook.

Several macroeconomic and industry-specific factors are shaping Bitcoin’s price trajectory. The Federal Reserve’s stance on interest rates and liquidity is a major driver of risk assets like Bitcoin. Easing monetary policy or a shift toward quantitative easing (QE) could provide further fuel for BTC’s rally. Additionally, companies continue to accumulate Bitcoin, reinforcing the asset’s growing status as a hedge against inflation. Ongoing discussions around crypto regulation and ETF approvals add both uncertainty and potential catalysts for Bitcoin’s next big move.

While optimism is rising, EGRAG Crypto’s warning highlights the risk of premature celebration. Bitcoin’s history shows that fake breakouts and swift corrections are common, especially near major resistance levels. Without a clear and sustained close above $90,000, Bitcoin could face profit-taking pressure, increased volatility, and market uncertainty. Traders who bought at lower levels may sell at this resistance, triggering a short-term pullback. If Bitcoin fails to hold above $90,000, it could quickly reverse toward support levels like $85,000 or even $80,500. Some investors may remain hesitant, delaying the next major breakout.

Bitcoin’s approach to $90,000 is an exciting moment for investors, but EGRAG Crypto’s caution serves as a reminder that confirmation is key. Until Bitcoin solidly closes above $90,000, the risk of a pullback remains. Investors should stay vigilant, watch key resistance levels, and manage risk appropriately before declaring victory.