In a recent turn of events, Bitcoin and the broader crypto market displayed remarkable resilience as they bounced back sharply from recent lows. This surge came after US President Donald Trump announced a 90-day pause on reciprocal tariffs for all countries except China. The temporary relief ignited a wave of buying across risk assets, including Bitcoin, which surged alongside equities, despite ongoing geopolitical tensions and fears of prolonged trade wars.
Currently, volatility remains high across all financial sectors, creating an environment where sharp price swings are becoming increasingly commonplace. Despite this, Bitcoin’s robust fundamentals stand out. According to data from IntoTheBlock, over 85% of Bitcoin holders remained in profit even during this week’s lows, showcasing the strength of long-term holders and investor conviction in BTC’s long-term value, especially as it trades nearly 30% below its all-time high.
The interplay between strong on-chain fundamentals and macro-driven volatility suggests that Bitcoin may be entering a new consolidation phase. While risks persist, particularly in the context of broader market instability, Bitcoin’s ability to maintain key levels and bounce back in response to relief news underscores its evolving position as a resilient asset in challenging times.
Following a significant loss of over 30% in its value as it dipped below $75,000, Bitcoin has demonstrated surprising strength. The recent bounce above the $80,000 mark has reignited hope among bullish investors, indicating that the worst phase of the correction may be behind us. However, persistent global tensions and US tariffs continue to loom over financial markets, raising fears of an impending global recession.
President Trump’s decision to pause tariffs has provided a momentary boost; nonetheless, without a broader agreement with China, market sentiment will likely remain fragile. Bitcoin now faces a crucial resistance zone around $88,700. A reclaim of this level could confirm a more sustained recovery and ignite renewed bullish momentum. Data also reveals that despite the recent market fluctuations, the confidence of Bitcoin holders remains strong, as reflected by the high percentage of holders remaining in profit.
As of now, Bitcoin is trading around $81,600 after a sharp bullish surge, reclaiming the critical $80K level that has historically served as both support and resistance during corrections. Maintaining this level is crucial for bullish investors seeking to gain momentum for a broader recovery. Yet, a growing resistance looms just above, particularly at the 200-day moving average (MA) sitting around $83,500.
If bulls manage to break past the resistance at $83.5K decisively, it would signal increasing strength and pave the way for a retest of the $87K–$88K zone. However, failing to secure this breakout and slipping back below $80K could trigger renewed panic selling, undermining the current bullish structure and potentially extending the broader downtrend that has been in play since March. Market participants are closely monitoring whether BTC can flip the $83.5K resistance into support in the coming trading sessions.
