Key Insights:
- Bitcoin broke above EMA50 and nears $89K technical target.
- Short-term holders remain at a loss, eyeing $91K resistance.
- BTC decouples from Nasdaq as U.S. dollar weakens.
Bitcoin (BTC) surged to $87,414 on Apr. 21, climbing more than $3,000 from intraday lows and marking its highest level since late March. The breakout lifted the asset to the upper boundary of a range that began in early March, triggering renewed optimism among traders anticipating a move toward $91,000.
BTC has now gained 16% since reaching a 2025 low just below $75,000 on Apr. 9. While the daily gain of 2.4% may not stand out in isolation, it comes after weeks of consolidation. The rally is also pushing short-term market sentiment into new territory, particularly among newer investors.
BTC Price Breaks Key Technical Barriers
Multiple traders flagged Bitcoin’s break above important resistance levels. Captain Faibik highlighted the move above the 50-day exponential moving average (EMA50), which stood at $85,400.
“Finally, $BTC bulls are breaking through the EMA50 resistance,” he wrote on X, while cautioning that the daily close would determine the strength of the breakout.
Crypto trader Ali confirmed that BTC was breaking out of a descending channel pattern. He projected a near-term upside target of $89,000.
Scott Melker, known as “The Wolf of All Streets,” took a more structural approach. He noted BTC was now breaking through descending resistance stemming from its all-time high, stating it needs to close above $88,804 to end the pattern of lower highs and lows.
On Apr. 19, analyst Rekt Capital stated that Bitcoin had not only broken its downtrend but had also retested the breakout level successfully—a technical development not seen since the trend began.
Short-Term Holders Still Underwater
According to on-chain data shared by Crazzyblockk, short-term holders (STH)—wallets holding BTC for less than six months—remain at an average -5.18% loss.
These holders have a realized price near $91,000. Until BTC decisively breaks this threshold, latent sell pressure could persist, particularly if price momentum fades.
Meanwhile, newer investors—those holding BTC for less than a month—are back in profit with a +3.73% realized gain, offering a short-term bullish signal. Their return to profitability could ease panic-driven selling and stabilize near-term sentiment.
The $91,000 level now serves as both psychological resistance and a structural marker for broader market profitability. A breakout above this line could reset the board for both short- and mid-term participants.
Bitcoin Decouples from Traditional Markets
The rally has come amid a broader divergence from traditional risk assets. Nasdaq futures declined 1% on Apr. 21, highlighting Bitcoin’s relative strength.
“Bitcoin is breaking out,” Melker wrote, noting the move while tech stocks remained under pressure.
This decoupling has also coincided with weakness in the U.S. dollar. The U.S. Dollar Index (DXY) has dropped 10% since Jan., according to Geiger Capital. The Kobeissi Letter noted that both gold and Bitcoin are sending the same macro signal: concern over dollar stability.
“Gold hit its 55th all-time high in 12 months and Bitcoin is officially joining the run,” the Kobeissi Letter posted. “Gold and Bitcoin are telling us a weaker U.S. Dollar and more uncertainty is on the way.”
That sentiment aligns with recent price action across both assets. While gold touched fresh highs, Bitcoin appears to be following the same inflation-hedge narrative that drove gains during the pandemic stimulus era.
Outlook Hinges on $91K Breakout
The $91,000 mark not only represents the average entry price for short-term holders but also functions as the psychological cap on the current uptrend.
A failure to break above this level could result in a pullback as underwater holders seek to exit at break-even. Conversely, a close above this threshold would likely draw more momentum buyers and potentially push BTC closer to Ali’s $89,000 target or higher.
As of writing, Bitcoin traded just above $87,000, with bulls aiming to close the daily candle above key resistance.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Moses K
