Bitcoin Reclaims $83K Amid $2T US Market Wipeout: Is a Rally to $92K Next?
April 4, 2025
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As market fear rises, Bitcoin holds firm above $80K. A triangle pattern and rising futures interest may push the BTC price to $92K.
Following a near $2 trillion wipeout in the U.S. market caused by Donald Trump’s tariff war, Bitcoin has reclaimed $83,000 after a brief plunge. With a short-term bounce back from $81,500 to $83,146, Bitcoin is gradually regaining bullish momentum.
Despite increased market volatility, a symmetrical triangle pattern may determine Bitcoin’s next move. As gold reaches a new all-time high amid uncertain market conditions, will Bitcoin follow suit and break out to a new all-time high?
Bitcoin Bullish Reversal Within Triangle
On the 4-hour price chart, increased price fluctuations have formed a symmetrical triangle pattern. Within this pattern, Bitcoin fluctuates between a price range of $81,595 and $88,357.
Currently, Bitcoin has formed a morning star pattern near the support trendline. This suggests a potential bullish reversal within the triangle, which could test the overhead trendline.
Also, the RSI is gradually recovering and moving above the halfway mark, supporting a bullish comeback. Additionally, the declining trend in the bearish histograms of the MACD indicator hints at a potential bullish crossover.
This could push the MACD and signal lines into the positive zone, signaling a possible bullish reversal within the triangle pattern. Based on the triangle pattern, an uptrend could push Bitcoin above $86,000 to test the overhead trendline.
Bitcoin ETFs Record Outflows Worth Almost $100M Amid Market Fear
Amid growing fear in the U.S. market, Bitcoin ETFs recorded a net outflow of $99.86 million on April 3. BlackRock was the only institution with an inflow on April 3, amounting to $65.25 million.
Grayscale experienced the highest outflow at $60.20 million, followed by Bitwise at $44.19 million. Fidelity, ARK, and 21Shares recorded outflows of $23.27 million and $20.05 million, respectively. Lastly, VanEck and WisdomTree saw outflows of $12.18 million and $5.22 million.
In total, six Bitcoin ETFs experienced outflows, while five others recorded zero flows.
Bitcoin Futures Signal Potential Short-Squeeze Rally
Over the past 4 hours, long positions in Bitcoin futures have surged significantly as BTC reverses direction. According to the BTC long-to-short ratio chart, long positions increased from 47.18% to 51.06%.
This shift has boosted the long-to-short ratio from 0.8932 to 1.0433. Additionally, the Bitcoin futures market saw a minor influx of traders, driving open interest up by 0.75% to $52.43 billion.
With bullish sentiment building in the derivatives market, the funding rate is 0.0055%. According to the Binance BTC-USDT liquidation heatmap, a positive recovery surpassing $83,555 could trigger a massive liquidation of $101.55 million.
This could result in forced liquidations of 50x leveraged positions worth $25.95 million and 100x leveraged positions worth $11.04 million. Notably, this has the potential to initiate a short-squeeze rally with over-leveraged short positions.
Based on the liquidation heatmap, the next target price of $83,903 could see a cumulative short liquidation leverage of $262.39 million.
Is a Rally Possible to $92K?
Despite rising anticipation of a bullish recovery, the market has seen a return of old Bitcoins. According to crypto analyst Ali Martinez, long-term holders moved over 1,058 BTC yesterday.
This suggests profit-taking by long-term holders (those with holdings of 7 to 10 years), contributing to the recent increase in supply. As a result, in the event of a sharper correction, BTC prices may break below the symmetrical triangle pattern.
Based on price action analysis, Bitcoin’s immediate support level below $80,000 is around $78,350. Optimistically, a short-squeeze-driven Bitcoin price recovery could trigger a breakout rally, potentially reaching the $91,604 swing high.
Long-term holders moved over 1,058 Bitcoin yesterday! Signs of profit-taking as older coins return to the market.
— Ali (@ali_charts) April 4, 2025
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