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As Bitcoin (BTC) surges back above the critical $80,000 mark, analysts are increasingly bullish about the cryptocurrency’s potential to reach new heights, potentially surpassing its January peak of $109,000.
This optimism is fueled by President Donald Trump’s recent decision to pause aggressive tariff policies for a 90-day period, alleviating fears of a global economic recession that had previously weighed on investor sentiment.
Bitcoin Crosses ‘Last Bear Trap’
Market analyst Atlas has highlighted what he describes as a significant turning point in the crypto market, suggesting that Bitcoin has just crossed the “last bear trap.”
This phrase indicates a moment where negative sentiment may have deterred retail investors, creating an opportunity for institutional buyers to accumulate Bitcoin at lower prices.
Atlas asserts that the market is currently in a “re-accumulation phase,” a classic stage in which the price stabilizes after a decline, setting the stage for future growth. In his analysis shared on social media platform X (formerly Twitter), Atlas outlined several key factors that support this bullish outlook.
The expert noted that BTC is currently establishing a new base around $73,600, which he refers to as the “BlackRock Defense Zone,” bolstered by significant institutional buying. If Bitcoin can flip the $95,000 level, it would confirm a breakout from this re-accumulation phase, setting the stage for a dramatic price increase.
Atlas further explained that the broader market conditions are favorable for Bitcoin. With many investors moving into stable assets due to prevailing fears, Bitcoin is positioned to benefit from a market rebound.
He pointed out that the Dollar Index (DXY) has begun to roll over from a multi-year high, indicating a potential shift in market dynamics that could favor riskier assets like Bitcoin.
Additionally, global M2 liquidity, which measures the money supply, is trending upward after a prolonged period of contraction. Historical trends suggest that when M2 liquidity increases alongside a declining DXY, assets like Bitcoin often outperform.
Potential Policy Shifts And Falling Energy Prices
During his analysis, Atlas also emphasized the significance of upcoming economic data, including Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) reports, which are expected to confirm a downward trend in inflation.
The expert noted that current real-time inflation metrics have remained under 2% for several weeks, indicating that the Federal Reserve may have the opportunity to soften its policies without losing credibility.
As inflation expectations decline, particularly with falling energy prices, the Fed is presented with a “cleaner setup” to pivot its policies. Atlas predicts that this could lead to a rally in Bitcoin from April through July, with potential for a blow-off top or significant policy shifts by late summer.
Ultimately, with the current market sentiment reflecting maximum fear and sidelined capital, Atlas believes that once this fear dissipates, the influx of capital into Bitcoin will be swift.
Featured image from DALL-E, chart from TradingView.com
