Bitcoin Surges 13.5% After US Trade Tariff Pause, Eyes $84,000 Resistance

Bitcoin (BTC) has been experiencing a period of consolidation, trading within a narrow range between $74,000 and $84,000 over the past week. This price compression comes after a significant market correction that saw BTC hit a five-month low of $74,773. The cryptocurrency's price has since surged by 13.5% from its Monday lows, attempting to reclaim the $84,000 resistance level.

The recent market recovery was driven by a 90-day pause on trade tariffs announced by the US President, which led to a jump in both crypto and stock prices. However, the rally slowed on Thursday, with Bitcoin retracing nearly 5% to the $79,000 support level. Analyst Alex Clay noted that despite the bullish rally, BTC's price needed to reclaim the broken $80,000 support and break through the descending 4-month resistance to confirm a short-term rebound.

Analyst Rekt Capital pointed out that Bitcoin successfully retested the $78,500 support but was rejected from the 4-month downtrend resistance. This price compression between the two levels typically precedes increased volatility. Rekt Capital also noted that BTC is developing another Higher Low on the RSI while forming Lower Lows on the price, a pattern that has historically preceded trend reversals.

Crypto analyst Ali Martinez suggested that BTC could see a retrace back to the $74,000 support zone, observing that Bitcoin's movements within its weekly range display a W-shape to the upper boundary. However, Martinez also highlighted Bitcoin's Friday performance, noting that it "is slicing through key resistance at $82,360." A sustained breakout above this level could open the door to $91,500, according to Martinez.

As of the latest update, Bitcoin is trading at $83,640, marking a 1% decline in the weekly timeframe. The cryptocurrency's price action remains crucial, with key support and resistance levels in play. A breakout above $84,000 could signal further upside potential, while a retrace to $74,000 would confirm the bearish scenario. Market participants are closely watching these levels as Bitcoin navigates through this period of price compression and potential volatility.