Bitcoin Surges 5% Toward $88,000 as Institutional Adoption Grows

Bitcoin has experienced a notable surge in value over the past week, with its price increasing by nearly 5%. This upward momentum has pushed the cryptocurrency towards the $88,000 mark, reclaiming key support levels that had been under pressure in recent weeks. The flagship cryptocurrency's recent performance has been marked by a series of gains, with Bitcoin surging 4.7% from the previous week's levels, closing above the $86,000 mark. This rebound comes after several rejections from the $84,000-$85,000 zone over the past two weeks.

During the start-of-week pump, Bitcoin approached the $89,000 resistance level, hitting a biweekly high of $88,765. However, the bullish momentum slowed, preventing a retest of the next crucial resistance zone. Despite this, Bitcoin has maintained its current range well, hovering between the $86,000-$88,000 support zone for the past 24 hours. Analyst Alex Clary expressed optimism about Bitcoin's momentum, noting that the cryptocurrency is showing a Relative Strength Index (RSI) bullish divergence, a V-shaped recovery, and a breakout above its downtrend resistance. Clary believes that a breakout and reclaim of the crucial $90,000 resistance level could propel BTC to jump between 8 to 14% from current prices, potentially reaching the $95,000-$100,000 levels lost in February.

Trader Daan Crypto Trades observed that Bitcoin's price has been correlated with the S&P 500 (SPX) and has mostly been moving in tandem with it. This correlation could explain the recent drop and bounce in Bitcoin's price. However, Daan noted that Bitcoin is still trading at a solid spot premium during this bounce, which could indicate a move back to new highs if it can maintain this momentum while slowly making its way back into the previous range of $90,000+.

Technical analysis by Rekt Capital suggests that Bitcoin needs weekly closes above $88,400 and $93,500 to end its downside deviation period. Over the past five weeks, BTC has been consolidating between two major bull market Exponential Moving Averages (EMAs), the 21-week and 50-week EMAs. Its price action has recently gotten closer to the 21-week EMA, around $88,400, ready for a major trend decision. According to the analyst, Bitcoin needs a weekly close above this level and a retest into support to target its Macro Range. Meanwhile, blockchain analytics firm Santiment warns of excessive bullish sentiment on social media, which often signals a market correction. History suggests that when the majority turns overly bullish, a pullback often follows.

In corporate news, GameStop's board approved the company's investment policy to include Bitcoin as a treasury reserve asset. This strategic move allows GameStop to allocate a portion of its cash holdings or future financing proceeds into Bitcoin. This decision reinforces Bitcoin's legitimacy as a store of value and signals growing confidence in its long-term stability. It could also boost its institutional adoption if more companies follow suit. Additionally, the Oklahoma House recently passed the Strategic Bitcoin Reserve Bill, joining other regions in embracing Bitcoin as a state treasury asset. This move further reinforces Bitcoin's legitimacy and could boost its institutional adoption.

All eyes are currently on the upcoming Global Reciprocal Tariffs set to take effect on April 2. This decision could create uncertainty in financial markets and impact Bitcoin's price movement. Initially, broad levies were anticipated, but recent reports suggest a more selective approach, focusing on countries with significant trade imbalances with the U.S. The cryptocurrency market has shown sensitivity to geopolitical developments, and Bitcoin's price movements have been closely linked to news on trade policies. If the tariffs turn out to be less restrictive than initially feared, Bitcoin could see increased demand, further pushing its price higher toward the key $90,000 level and beyond.