Bitcoin Tests $88K Resistance Again as Price Hits $89,175 — What’s Next for BTC?
Bitcoin (BTC) is once again challenging a crucial resistance level at $88,000, now trading at $89,175, marking a 1.7% gain in the past 24 hours. This recent surge places BTC near its highest levels since late March, showing a solid 20% rebound from its April 7 low, and adding strength to this week’s bullish momentum.
Market Context: Bitcoin Rises Amid Traditional Market Turbulence
Bitcoin’s rally comes as U.S. equity markets face volatility, driven by rising geopolitical tensions and pressure from President Donald Trump on the Federal Reserve to cut interest rates. Trump’s push to potentially remove Fed Chair Jerome Powell before the end of his term in May 2026 has added uncertainty to traditional markets, causing a flight to alternative assets like BTC.
While the S&P 500 is down 8% month-to-date and gold has gained around 10%, Bitcoin has managed a 7% rise in April, showcasing growing investor preference for decentralized digital assets amid macroeconomic turbulence.
Institutional Inflows Fueling the Surge
Spot Bitcoin ETFs have recorded major inflows this week, a clear sign of institutional accumulation. On Monday alone, spot Bitcoin ETFs in the U.S. saw $381.4 million in net inflows—the highest daily figure since January 30, when they recorded $588.2 million. This marks the fourth day of inflows over the last five trading sessions, pointing to renewed institutional confidence.
Decoupling from Equities? Bitcoin’s Correlation Weakens
Historically, Bitcoin has moved closely with risk assets like tech stocks. However, that correlation appears to be fading. According to Compass Point analyst Ed Engel:
“Bitcoin continues showing signs of resilience … up 4% week-over-week versus the S&P 500 down 6%. Its 30-day correlation with the S&P 500 is now just 0.65, compared to nearly 1.0 during prior sell-offs.”
This weakening correlation suggests Bitcoin could be emerging as a quasi-safe haven, particularly in an era of monetary policy uncertainty and rising global tensions.
Technical Analysis: Resistance at $88K, Next Stop $95,900?
Katie Stockton of Fairlead Strategies identifies $88,000 as a key resistance level. Breaking and sustaining above this level could open the path toward $95,900. However, caution is advised, as momentum indicators show potential exhaustion, and trading volumes remain relatively light.
“While we’re constructive on bitcoin’s recent decoupling, recent strength comes alongside light trading volumes,” says Engel. “This lowers our conviction that bitcoin can break above the $93,000–$95,000 range without a major catalyst like Fed easing or resolution of trade tensions.”
Watch Out for the Death Cross — Or Not?
Some bearish technical signals, like the “death cross” (where the 50-day moving average crosses below the 200-day moving average), have raised eyebrows. Historically, this has been viewed as a warning sign for potential downturns.
However, several analysts caution against overinterpreting this pattern in isolation, especially given Bitcoin’s unique market dynamics, where volatility and short-term corrections are common even in longer-term bull runs.
Bitcoin Long-Term Outlook: $200K by 2025?
Despite near-term uncertainty, long-term sentiment remains optimistic. Research firm Bernstein recently reiterated its bullish outlook, forecasting Bitcoin could hit $200,000 by late 2025, driven by:
- Institutional adoption via ETFs
- Halving-related supply constraints (the next Bitcoin halving occurred in April 2024)
- Macro hedge narratives in uncertain financial environments
Federal Reserve Chair Jerome Powell even acknowledged Bitcoin’s relevance, stating it’s now seen as a digital competitor to gold.
Key Takeaways
- Current BTC Price: $89,175
- Resistance Level: $88,000 (testing), next key level: $95,900
- Support Level: Potential downside to $73,800 if rejected
- 30-day S&P 500 Correlation: Down to 0.65
- ETF Inflows: $381.4M on Monday (biggest since Jan 30)
Final thoughts: Is BTC Ready for a Breakout?
Bitcoin is at a crucial juncture. A successful breakout above the $88K resistance zone could ignite a push toward the psychological $90K and technical $95K levels. However, this move likely hinges on broader market catalysts—such as dovish Fed policy or geopolitical clarity.
For now, Bitcoin’s growing divergence from equities, renewed ETF demand, and solid technical posture keep bulls cautiously optimistic. Long-term holders and institutional players continue to accumulate, underscoring confidence in Bitcoin’s role in the future of finance.
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