Bitcoin and the entire crypto market experienced a rollercoaster of volatility yesterday, plunging on fears of a U.S. trade war before staging a rapid recovery. The price dropped over 9% in just a few hours, hitting a low of $91,530, only to bounce back by more than 12% following reports that President Trump is negotiating with Mexico and Canada to lift tariffs. This shift in sentiment quickly fueled renewed optimism across the market.
Top analyst Daan shared a technical analysis on X, highlighting Bitcoin’s resilience amid uncertainty. He noted that BTC still looks much stronger than anything else in the market, maintaining a solid uptrend when viewed from a broader perspective. Despite the aggressive sell-off, Bitcoin remains structurally sound, with strong demand levels preventing deeper corrections.
With BTC trading back above key levels, investors are watching closely to see if the cryptocurrency can sustain this momentum and push toward all-time highs. The coming days will be crucial in determining whether Bitcoin can solidify its position as the dominant asset in the market or if further volatility will test its strength again. For now, Bitcoin appears to be leading the market recovery, proving its resilience once more.
Bitcoin Holding Bullish Price Action
Despite recent volatility and aggressive selling pressure, Bitcoin continues to show strength compared to altcoins, proving its dominance in the market. While many altcoins struggle to recover, BTC has rebounded quickly from its lows, reinforcing its position as the leading asset. Yesterday’s price action further confirmed that Bitcoin is still in control, and the long-anticipated altseason may be delayed until altcoins can catch up with BTC’s momentum.
Top analyst Daan shared a technical analysis on X, highlighting Bitcoin’s resilience. He noted that BTC is much stronger than anything else in the market and still looks perfectly fine when zooming out. According to Daan, Bitcoin’s demand remains significantly higher than other assets, especially during times of uncertainty. This is evident in the recent market movement, where BTC recovered swiftly while most altcoins remained stagnant or continued to drop.
Daan’s analysis reveals that Bitcoin is currently trading within a defined range, with an all-time high (ATH) of $109K at the upper boundary and strong support at the $90K level. As long as BTC holds within this range, the potential for another breakout remains high. If bulls manage to push BTC above the ATH, a new bullish phase will begin, potentially leaving altcoins further behind.
Another key factor driving Bitcoin’s dominance is institutional interest. The recent data from major on-chain analytics platforms reveals that Bitcoin accumulation remains strong among whales, with large holders continuing to add BTC despite market uncertainty. Unlike previous market cycles, where retail investors drove price surges, this rally appears to be fueled by institutions and long-term holders, making it more sustainable.
Testing Key Demand Levels
Bitcoin is testing crucial liquidity below the $100K mark, currently trading at $99,400 and attempting to find a strong footing before its next move. Price action remains highly unpredictable and volatile, with investors closely watching key levels for signs of a potential breakout or further downside.
For BTC to confirm short-term strength, it must reclaim the $100K mark and hold it as support. This level is a psychological and technical barrier that, once secured, could trigger renewed bullish momentum. If Bitcoin struggles to maintain this level, further consolidation below $100K could follow, delaying any breakout attempts.
The $98K level is another crucial support zone. As long as BTC stays above this mark, a push back above $100K remains highly likely. Losing this level could lead to a deeper retracement, testing lower demand zones before another attempt to reclaim higher levels.
To fully regain bullish momentum, Bitcoin must reclaim the $103,600 mark, a key resistance level that has limited upward moves in recent days. A successful breakout above this level would set the stage for a massive rally toward all-time highs, opening the door for BTC to enter price discovery once again.
Featured image from Dall-E, chart from TradingView
