The price of Bitcoin (BTC) settled above $84,000 on Friday, a short-term support that gained importance this week. The world’s largest cryptocurrency by market capitalization has continued to withstand the storms caused by US President Donald Trump’s ongoing trade war with China, after suspending-for-tat tariffs for 90 days on April 9 on other countries. Bitcoin was priced at $84,605 at the time of writing on Friday, and its technical structure indicates That breakthrough may be imminent.
Federal Reserve Chairman Warns Tariffs Could Have Greater Impact on U.S. Economy
Federal Reserve Chairman Jerome Powell has expressed concerns about current economic conditions, noting that the central bank may find itself in a dilemma between controlling inflation and supporting economic growth. Speaking at the Economic Club of Chicago on Wednesday, Powell said: “We may find ourselves in a difficult scenario where our dual goals conflict.”
Regarding interest rates, Powell stated that the central bank will respond to the data received to inform him of adjustments to the current monetary policy stance. However, if inflation rises sharply, the Fed is prepared to keep interest rates steady or consider raising them. Slowing economic growth will lead to lower interest rates.
President Trump’s tariffs are very likely to cause at least a temporary rise in inflation. Powell expects the impact of tariffs to be greater than expected and could lead to continued inflation.
Following these remarks, President Trump launched a direct attack on Jerome Powell in a Truth Social post, accusing the Fed chairman of being “too late and wrong.” According to the president, the Federal Reserve should have already cut interest rates because “the United States is getting rich from tariffs.” Trump added that it was time for Powell to step back and leave office.
Potential selling pressure on Bitcoin amid resistance at 85k
The realized price ranges of the UTXO Bitcoin [BTC] index for short-term investors indicated the possibility of selling pressure.
Bitcoin (week-to-month) and (month-to-3 months) denominations saw significant declines, resulting in both falling below their ranges (3 months to 6 months) at the $85K area.
Historically, these crossovers have indicated the potential for price decline, as new investors also tend to sell at a loss while cost rules undergo adjustments.
These short-term investors selling bitcoins at a loss could lead to a broader negative sentiment, the crossover noted. However, the trend points to a slowdown or stability, as Bitcoin struggles to regain the $90K level. Bitcoin’s bearish signal may fade if the price crosses its realized price ranges crossing the key $90K threshold. Bitcoin’s price remained at $80K, as the short-term trend remained bearish until confidence returned to the market.
Price divergence has become crucial, as any drop beyond certain thresholds may scare sellers, but the price may stabilize through an upward reversal.
Further analysis showed that Bitcoin faced resistance at USD$85,250 despite Coinbase Premium’s consistently positive level of 0.01%.
Spot buying volumes on both Binance and Bybit reached high levels, with CVD readings reaching 307.34M and 40.65M, but prices remained unresponsive to these behavioral signals.
The decrease in open interest from US$6.64 billion to US$6.55 billion indicates the possibility of divestitures of long-term positions and lower entry of new positions, indicating a potential weakening in market sentiment.
Moreover, Bitfinex’s tilt continued to fall, with 71,036 BTC remaining in its positions. However, participants remained cautious as Bitcoin failed to break through resistance despite bullish spot buying indicators.
BTC nears potential bullish breakout
Bitcoin’s price is slightly below the 50-day and 200-day exponential moving averages (EMAs) at the time of writing on Friday, as bulls try to push to break the bearish wedge pattern shown on the daily chart.
A descending wedge indicates a possible bullish reversal of the price of Bitcoin, indicating that the bearish momentum is fading. Should a break above the upper trend line resistance prove to be true, expect a 15% rise to $97,938? Traders can buy at break, with stop-loss orders placed below this trend line. The objective represents the distance between the widest points of the pattern, stable above the breaking point.
A crucial bullish point to consider for Bitcoin is the buy signal from the Moving Convergence and Divergence Index (MACD), which emerged when the MACD (blue) line crossed the signal line (red) on April 12. Meanwhile, the Relative Strength Index (RSI) crossed the midline and settled at 51.97, indicating a potentially strong bullish momentum. .
Therefore, a breakout of the wedge pattern accompanied by a high trading volume could mark the beginning of Bitcoin’s return to the $90,000 range.
In traditional finance, capital formation is a slow and complex process. The company raises funds, invests them over months or years in infrastructure, products or real estate, and only then begins the long waiting period to see if the capital has generated a return.
This delay is not a disadvantage, but rather a hallmark of the traditional system, which is based on physical constraints, organizational costs, intermediate trust, and long feedback loops. This system has not changed – yet.
Bitcoin is fundamentally different. For the first time, companies have access to digital, scarce, verifiable capital in real time. This allows for a corporate capital cycle that takes no years, but 24 hours.
