As market fear rises, Bitcoin holds firm above $80K. A triangle pattern and rising futures interest may push the BTC price to $92K.
Following a near $2 trillion wipeout in the U.S. market caused by Donald Trump’s tariff war, Bitcoin has reclaimed $83,000 after a brief plunge. With a short-term bounce back from $81,500 to $83,146, Bitcoin is gradually regaining bullish momentum.
Despite increased market volatility, a symmetrical triangle pattern may determine Bitcoin’s next move. As gold reaches a new all-time high amid uncertain market conditions, will Bitcoin follow suit and break out to a new all-time high?
Bitcoin Bullish Reversal Within Triangle
On the 4-hour price chart, increased price fluctuations have formed a symmetrical triangle pattern. Within this pattern, Bitcoin fluctuates between a price range of $81,595 and $88,357.
Currently, Bitcoin has formed a morning star pattern near the support trendline. This suggests a potential bullish reversal within the triangle, which could test the overhead trendline.
Also, the RSI is gradually recovering and moving above the halfway mark, supporting a bullish comeback. Additionally, the declining trend in the bearish histograms of the MACD indicator hints at a potential bullish crossover.
This could push the MACD and signal lines into the positive zone, signaling a possible bullish reversal within the triangle pattern. Based on the triangle pattern, an uptrend could push Bitcoin above $86,000 to test the overhead trendline.
Bitcoin ETFs Record Outflows Worth Almost $100M Amid Market Fear
Amid growing fear in the U.S. market, Bitcoin ETFs recorded a net outflow of $99.86 million on April 3. BlackRock was the only institution with an inflow on April 3, amounting to $65.25 million.
Grayscale experienced the highest outflow at $60.20 million, followed by Bitwise at $44.19 million. Fidelity, ARK, and 21Shares recorded outflows of $23.27 million and $20.05 million, respectively. Lastly, VanEck and WisdomTree saw outflows of $12.18 million and $5.22 million.
In total, six Bitcoin ETFs experienced outflows, while five others recorded zero flows.
Bitcoin Futures Signal Potential Short-Squeeze Rally
Over the past 4 hours, long positions in Bitcoin futures have surged significantly as BTC reverses direction. According to the BTC long-to-short ratio chart, long positions increased from 47.18% to 51.06%.
This shift has boosted the long-to-short ratio from 0.8932 to 1.0433. Additionally, the Bitcoin futures market saw a minor influx of traders, driving open interest up by 0.75% to $52.43 billion.
With bullish sentiment building in the derivatives market, the funding rate is 0.0055%. According to the Binance BTC-USDT liquidation heatmap, a positive recovery surpassing $83,555 could trigger a massive liquidation of $101.55 million.
This could result in forced liquidations of 50x leveraged positions worth $25.95 million and 100x leveraged positions worth $11.04 million. Notably, this has the potential to initiate a short-squeeze rally with over-leveraged short positions.
Based on the liquidation heatmap, the next target price of $83,903 could see a cumulative short liquidation leverage of $262.39 million.
Is a Rally Possible to $92K?
Despite rising anticipation of a bullish recovery, the market has seen a return of old Bitcoins. According to crypto analyst Ali Martinez, long-term holders moved over 1,058 BTC yesterday.
This suggests profit-taking by long-term holders (those with holdings of 7 to 10 years), contributing to the recent increase in supply. As a result, in the event of a sharper correction, BTC prices may break below the symmetrical triangle pattern.
Based on price action analysis, Bitcoin’s immediate support level below $80,000 is around $78,350. Optimistically, a short-squeeze-driven Bitcoin price recovery could trigger a breakout rally, potentially reaching the $91,604 swing high.
Long-term holders moved over 1,058 #Bitcoin $BTC yesterday! Signs of profit-taking as older coins return to the market. pic.twitter.com/WdbuGVITXa
— Ali (@ali_charts) April 4, 2025
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
