Bitcoin (BTC) has managed to hold its ground, scratching its way back to an impressive high of $87.3K yesterday, demonstrating its resilience in a volatile market.
Despite Bitcoin’s recent modest gains, the broader cryptocurrency market has been struggling, with altcoins like $HYPE, $CRO, and $ONDO lagging behind in the wake of Bitcoin’s price movements.
Over the past week, the total cryptocurrency market cap has seen a slight decline of about 7%, with Bitcoin showing a slight gain of 0.2%. This contrast highlights Bitcoin’s continued dominance and strength relative to other altcoins, though the market remains uncertain in the face of external factors.
📊 Bitcoin's market value has scratched its way back to a high of $87.3K today as altcoins continue to fall slightly behind. Crypto's total market cap is still down ~-7% in the past week despite $BTC being +0.2% in the past week. $HYPE, $CRO, & $ONDO are also altcoins to watch. pic.twitter.com/SRnPA3aWwl
— Santiment (@santimentfeed) April 2, 2025
Contents
Tariffs Impact and Bitcoin’s Key Price Range
Bitcoin’s price action has also been affected by macroeconomic news, especially from the U.S. When President Donald Trump announced new tariffs, for instance, we saw a clear market reaction with Bitcoin. Last night, a total of 18,930 BTC was sold off in a hurry by short-term holders, and we can guess with a fair degree of certainty that these folks were motivated to hit the sell button by the new economic uncertainty the tariffs are causing. This is yet another example of how fragile market sentiment is right now, particularly for short-term investors who are stirring increasingly restless.
18,930 #Bitcoin $BTC were sold by short-term holders last night, immediately after @realDonaldTrump announced new tariffs! pic.twitter.com/pONWoxV5a9
— Ali (@ali_charts) April 3, 2025
At present, Bitcoin is teetering in a pivotal price span, holding between $86,900 and $84,800. This area has morphed into something akin to a no-wire box, confined and crucial for Bitcoin’s current price action. It’s what Bitcoin seems to do instead of a not-so-happy standard deviation when there are all kinds of reports foretelling its doom or salvation. The box doesn’t really have a lid; we could use fanciful names for some of the reports that tend to come in right before or after making a move outside the confines. These reports use all kinds of research to tell us why the top is in or why the bottom is in.
For Bitcoin bulls, it is crucial to keep supports above inline with the $84,800 mark, and it is most likely to occur if the sustaining forces are maintaining that $84,800 threshold as the bottom price level. That’s gives Bitcoin a lion’s share of the chances to keep the line above that level, which is the line the bulls want to keep in the going for the upside—that Bitcoin continues to not only coalesce above that $84,800 mark but also ‘attempt a new upside breakout.’
Key Support Zones and Investor Sentiment
The tethering of Bitcoin’s price movement occurs at several support levels. These are particularly evident between $65K and $71K. This is a zone of price action that has lately gravitated in the direction of not-so-recent buyers who are in the weight class of “strong hands.” Accumulating in the presumption that a price breakout will occur soon, these levels seem to be serving the function of “upper supports.” It is not as though price cannot go lower; rather, it seems that these just are not the places where price is likely to go lower for very long.
$BTC’s key support zone sits between $65K–$71K, where recent buyers have been loading up.
Weak hands might panic, but stronger holders are stacking.
This is the kind of range where big moves get set up. pic.twitter.com/wR7YVh6V1v
— Kyledoops (@kyledoops) April 2, 2025
The market dynamics of Bitcoin draw their strength from a potent combination of short-term speculation and long-term faith. When the market shows even the slightest sign of trouble, it is the weak hands that sell off and for all intents and purposes, give up on Bitcoin. But when it comes to the stronger hands in the market, the ones that supposedly have better character with which to support Bitcoin, the recently established support zone between $65K and $71K is the place where these guys have put their money and their belief.
Inflows to Bitcoin ETFs Signal Reversal in Market Sentiment
Institutional investors are a renewed sign of confidence in the relatively challenged cryptocurrency market. They have shown considerable interest in Bitcoin. On April 2, the spot Bitcoin ETFs in the U.S. recorded a total net inflow of $221 million after three consecutive days of outflows. This marked reversal highlights the increasingly growing appetite for Bitcoin among institutional investors. They are now viewing the cryptocurrency as a legitimate store of value, and this trajectory further narrows the route toward Bitcoin’s potential future as a widely acknowledged reserve currency.
On April 2, U.S. spot Bitcoin ETFs recorded a total net inflow of $221 million, marking a reversal after three consecutive days of outflows. In contrast, spot Ethereum ETFs saw a total net outflow of $51.24 million, with none of the nine ETFs registering a net inflow.…
— Wu Blockchain (@WuBlockchain) April 3, 2025
The capital pouring into Bitcoin ETFs indicates that institutional sentiment is headed in a positive direction. Even so, recent pressures in the external macro environment have tested the geforce capacitors of Bitcoin’s resilience. With a not unthinkable midterm election in the offing, and a high noon for U.S. debt and other payments coming up in December, the macroworld is not in an especially safe space. Yet the altcoin market is the one that’s volatile right now, and even institutional Tesla and Elon Musk seem to be matters of history and Legends of the Fall.
Altcoins Struggle to Keep Pace
Despite showing some resilience, altcoins such as $HYPE, $CRO, and $ONDO are unable to keep pace with Bitcoin. The tokens are running up against a couple of headwinds. One is that in a time of increasing competition among altcoins, Bitcoin is simply too robust and well-established a competitor for these tokens to contend with. To add to that, these tokens have in recent days simply not performed anywhere near as well as Bitcoin.
This trend suggests that for the moment, Bitcoin is still the favored asset for not only long-term but also for short-term investors. It is stable enough now, at a price midpoint between all-time highs and recent lows, that its dominance seems to dictate the broader market’s movement. Some alternative cryptocurrencies (altcoins) may very well catch up down the road, but as of now, Bitcoin seems to have the wind at its back.
Looking Ahead: Will Bitcoin Break Out or Consolidate?
With Bitcoin lingering between vital support levels, all eyes are on it to see what might unfold next.
The price of Bitcoin hovers between the vital levels of 86,900 and 84,800 at present.
Investors gnash their teeth.
When Bitcoin moves, it sets the tone for everything else in the crypto market.
Bitcoin has managed to remain unscathed in the face of external challenges that have come at it from all angles, like new tariffs, for instance. But the biggest threat to Bitcoin seems to be the volatility of its own market. However, despite that, Bitcoin has been showing signs of increasing maturity as an asset. For one, the storied involvement of institutional investors has only ramped up over the last couple of years. And sitting underneath that are the strong hands of holders who seem less likely to capitulate in the face of potential downside than the weak hands that Bitcoin seems to have at its disposal.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
