Bitcoin Soars to $88,500: Spot Volume Explodes, But Will Trade Wars Dampen the Rally?

Bitcoin’s price experienced a dramatic surge, reaching a session high of $88,500. This unexpected rally has left many wondering if this upward momentum can overcome significant resistance levels, particularly the multi-month overhead resistance aligned with the 50-day moving average.

Key Developments:

• Bitcoin’s April 1st gains were fueled by news that the Trump administration hadn’t finalized its anticipated “Liberation Day” tariffs, easing concerns about potential market disruptions.

• Several countries, including Israel, Mexico, and India, have either withdrawn tariffs on US imports or indicated a reluctance to engage in retaliatory tariff measures.

• Bitcoin (BTC) is currently trading slightly below a 3-month descending trendline resistance level, a point where previous rallies have encountered significant selling pressure.

• Total market liquidations over the past 12 hours have reached a substantial $145 million, with $69.4 million attributed to Bitcoin short positions.

Data from leading cryptocurrency analytics platforms like Kingfisher, CoinGlass, and Velo indicate that short liquidations have significantly contributed to today’s price surge above $88,500.

For several months, Bitcoin’s price has struggled to maintain gains from leverage-driven rallies. However, beyond the futures market, positive indicators suggest a potential shift from a bearish to a bullish market structure.

As illustrated below, recent price increases have been accompanied by robust spot market buying and a resurgence of the Coinbase Pro premium, leading some analysts to believe that institutional investors, such as Strategy and other firms focused on accumulating Bitcoin reserves, are actively purchasing BTC.

In recent weeks, prominent companies like GameStop, MARA, Metaplanet, and Strategy have all announced plans to increase their Bitcoin holdings, with GameStop on the verge of a significant purchase and Strategy actively expanding its BTC position.

The near-term trajectory of Bitcoin’s price will likely depend on sustained spot buying volume on major exchanges like Binance and Coinbase Pro, as well as the overall market’s response to the potential impact of President Trump’s “Liberation Day” tariffs.

Related: Bitcoin price on verge of breaking 10-week downtrend — Is $90K BTC next?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.