"Just a temporary retreat"...Bitcoin prepares for ascent after holding $70,000

▲ Bitcoin (BTC)

The virtual asset market has entered a temporary breather after its recent surge, but the overall bullish sentiment remains strong.

Alexander Kuptsikevich, Senior Market Analyst at FxPro, reported via FXStreet on April 9 (local time) that the total market capitalization of virtual assets rose to $2.45 trillion but has now slightly dropped to around $2.4 trillion. Kuptsikevich assessed that this downward adjustment is a healthy process to cool down an overheated market, and investors' optimistic outlook remains unchanged. He explained that this is a natural progression after Bitcoin (BTC) broke past $72,000, leading to a large-scale liquidation of bear positions.

Bitcoin is currently consolidating its support base around the $71,000 mark. After surpassing $72,000 during intraday trading, setting a three-week high, profit-taking sell-offs occurred, but the psychological threshold of $70,000 has been stably defended. Kuptsikevich predicted that if Bitcoin closes above $70,000, it will accumulate upward energy and attempt to break the next resistance level at $73,000. Whether the supply zone around $71,000 is absorbed will be crucial in determining the short-term direction.

The Advanced Sentiment Index remains in the "Greed" phase, but the index has somewhat eased from extreme levels, signaling market stabilization. According to Santiment data, despite the drop in Bitcoin's price, open interest remains high, reflecting sustained investor interest. The Relative Strength Index (RSI) also stays above neutral levels, indicating that buying momentum has not completely subsided.

The macroeconomic environment also provides a favorable backdrop for the virtual asset market. News that US President Donald Trump agreed to a two-week ceasefire with Iran eased geopolitical tensions and facilitated capital inflow into risk assets. A reduction in geopolitical risk leads to a weaker dollar, increasing the attractiveness of alternative assets like Bitcoin. Investors are acting cautiously ahead of the Federal Open Market Committee (FOMC) meeting minutes release, yet are also looking for opportunities to buy at lower prices.

Major virtual assets like Bitcoin and Ethereum (ETH) are expected to gain stronger upward momentum through this correction. Kuptsikevich characterized the current market situation as a prelude to a major rally, emphasizing that the long-term upward trend remains intact. Investors are monitoring whether the $70,000 support level holds and changes in key macroeconomic indicators to adjust their positions.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*