TLDR
- Bitcoin is trading around $84,500, with traders becoming more optimistic it can regain the $90,000 level
- Santiment’s social media tracker shows Bitcoin sentiment has flipped bullish with a score of 1.973
- Fed Chair Powell dampened hopes for early rate cuts, citing need to assess impact of U.S. tariffs
- Solana (SOL) jumped 6% while other major cryptocurrencies added 1-3% gains
- Institutional involvement and accumulation patterns from mid-sized investors show growing confidence
Bitcoin is currently trading around $84,500 as traders show renewed optimism about the cryptocurrency’s potential to reclaim the $90,000 price level. Despite price fluctuations, market sentiment has turned positive according to recent data from crypto analytics platform Santiment.
Social media chatter about Bitcoin has shifted to a bullish tone, with Santiment’s sentiment tracker moving into “bullish territory” on April 16 with a score of 1.973. This change comes after a period of neutral sentiment when social media users were uncertain about Bitcoin’s direction as it moved repeatedly above and below the $85,000 mark.
Bitcoin tapped as high as $86,000 on April 15 before retracing down to $83,000 the following day. If Bitcoin reclaims the $85,000 level, approximately $254 million in short positions will be at risk of liquidation, according to data from CoinGlass.
Fed Policy and Global Economic Factors
The cryptocurrency market has been influenced by broader economic conditions, particularly the stance of the Federal Reserve on interest rates. Fed Chair Jerome Powell recently dampened hopes for early rate cuts, noting that the central bank needs more time to assess the effects of tariffs on the global economy.
Powell’s comments suggest that the economic effects will include higher inflation and slower growth, pointing to potential “stagflation” — reminiscent of the 1970s when the U.S. experienced weak economic activity alongside double-digit inflation.
“Traders had been hoping for the Fed to come in with early rate cuts to bolster markets, but it looks like that’s not going to happen anytime soon,” said Jeff Mei, COO at BTSE. “In the short term, we expect Bitcoin to continue to trade in the $80,000 – $90,000 range until we see more clarity on tariff negotiations and rate cuts.”
Market Performance and Technical Indicators
The broader cryptocurrency market has shown resilience in recent trading sessions. While Bitcoin gained about 2% in the past 24 hours, other major cryptocurrencies like Ethereum (ETH), XRP, Dogecoin (DOGE), and BNB added between 1% and 3%. Solana (SOL) led the gains with a 6% increase.
Technical analysis reveals a bullish divergence on daily timeframes, with the Relative Strength Index (RSI) forming higher lows despite price consolidation. Trading volume has surged 18% week-over-week, indicating renewed investor interest and liquidity.
Order book analysis shows buy walls at the $86,000 and $88,500 levels, suggesting strong support that could help push Bitcoin toward the $90,000 target. However, the $89,000-$90,000 range has proven to be a psychological battleground, with long-term holders historically taking profits at these levels.
We’re not in the old bull runs anymore.
Now there are ETFs, nation-states, strategic reserves, and presidents talking about #Bitcoin.
$500K BTC isn’t crazy. @Excellion calls it the Veblen threshold, when the price goes up causing demand to go up even more. 🌍📈 pic.twitter.com/9AUKCsJ60i
— JAN3 (@JAN3com) April 16, 2025
Institutional Interest and Investor Behavior
Institutional involvement remains a key driver in Bitcoin’s price movement. The approval of additional Bitcoin ETF products has introduced approximately $4.2 billion in new capital flows to the ecosystem since February. Corporate treasury diversification continues to provide support, with several Fortune 500 companies announcing increased Bitcoin allocations.
Wallet addresses holding between 10-100 BTC have increased their positions by approximately 1.2% over the past three weeks, signaling growing confidence among mid-sized investors. This accumulation pattern mirrors behavior observed during previous successful price recoveries.
In contrast to the bullish social media sentiment, other crypto sentiment trackers show a more cautious outlook. The Crypto Fear & Greed Index currently reads a “Fear” score of 30 out of 100.
This mixed sentiment comes after the crypto market posted its weakest first quarter performance in years. Bitcoin and Ethereum saw price declines of 11.82% and 45.41% respectively over Q1 2025 — a quarter that has historically seen strong results for both assets.
Several popular crypto accounts on social media have shared bullish comments on Bitcoin recently. Samson Mow’s firm Jan3 suggested that Bitcoin hitting $500,000 “isn’t crazy,” while crypto trader “Ted” stated that “Global money supply is going up, and eventually, this liquidity will go into Bitcoin. Just wait and watch.”
Meanwhile, crypto trader Titan of Crypto noted that “according to Dow Theory, BTC remains in an uptrend, consistently printing higher highs and higher lows.”
#Bitcoin Still in an Uptrend 🚀
According to Dow Theory, #BTC remains in an uptrend, consistently printing higher highs and higher lows.
The structure is intact. 📈 pic.twitter.com/yBcHTPIKP9
— Titan of Crypto (@Washigorira) April 16, 2025
Despite the optimism, challenges remain before Bitcoin can firmly establish itself above $90,000. Regulatory uncertainty continues to affect certain market segments, with proposed reporting requirements potentially impacting market liquidity.
Technical resistance is further complicated by what traders call “spoofy resistance” – large sell orders placed on order books with the intention of being canceled before execution, creating artificial price ceilings.
As global macro conditions create a favorable environment for Bitcoin’s potential resurgence, persistent inflation concerns and geopolitical tensions have reinforced Bitcoin’s narrative as a hedge against monetary debasement.
For now, Bitcoin continues to trade within the $80,000 to $90,000 range as the market awaits more clarity on economic policies and the evolution of institutional adoption.
