Bitcoin Surges Above $88K: Is $95K a Reversal Zone Before a Summer Dip?

April 23, 2025 – DailyForex.pk
Bitcoin (BTC) surged past $88,500 in a powerful breakout that cleared previous resistance and ignited a wave of short liquidations. The move triggered over $100 million in BTC short positions, with more than $130 million liquidated across the entire crypto market, confirming a bullish continuation phase in the daily trend structure.

---

🚀 Technical Outlook: Momentum Builds Toward $95,000 Resistance

With Bitcoin trading above $88K, analysts are now watching two key short-term resistance levels:

• $91,000
• $93,000, which aligns with the top of the TBO Cloud

Above that lies the critical Fibonacci cluster between $94,500 and $95,000. This confluence zone marks the 0.618 Fibonacci retracement from the current bull trend and the 1.618 Fibonacci extension from 2024—both major technical levels that historically act as reversal points.

If BTC reaches this zone, traders should prepare for a potential retracement toward $82,000, especially if price action stalls or momentum indicators begin to weaken.

---

📉 Sentiment and Pattern Suggest a Pullback Near $95K

The rapid climb has shifted investor psychology from cautious optimism to borderline euphoria. This pattern mirrors previous cycles, where excessive optimism near key resistance zones often led to short-term corrections.

Historically, the phrase “Sell in May and walk away” has applied to Bitcoin as well—both in 2021 and 2023, the crypto market entered periods of consolidation and chop in early summer. A similar move this year could see BTC cooling down between $82,000 and $85,000 before potentially resuming its uptrend later in Q3.

---

💸 Stablecoin Dominance Drops—Bullish Rotation into Crypto

On-chain signals confirm that capital is flowing out of stablecoins and into crypto assets, a historically bullish development. A TBO Close Long printed on the stablecoin dominance chart, just as it did before Bitcoin’s September 2024 rally.

Although this shift will unfold gradually, it suggests growing confidence in the crypto market and signals early stages of a broader bullish phase.

---

📊 Bitcoin Dominance Surges: Altcoins Lag Behind

Bitcoin dominance recently broke above 64.34%, its February high, confirming a TBO Breakout pattern. This rally in BTC dominance, paired with an RSI above 80, is a strong bullish signal for Bitcoin but bearish for altcoins.

While isolated altcoins like NEIRO (ETH-based) have shown explosive gains (+60%), most altcoins remain deeply oversold and underperforming BTC. The trend suggests that Bitcoin will continue to lead the market, with low-cap coins unlikely to rally unless BTC enters a new consolidation phase.

---

🔁 Market Strategy: Why Bitcoin Remains the Core Holding

Bitcoin remains the anchor of the crypto market. Its performance dictates the broader market cycle—when BTC rallies, small caps surge; when BTC pulls back, they collapse even harder.

A 30% or more BTC allocation is a smart and strategic portfolio foundation, especially during uncertain macroeconomic phases.

---

📅 Forecast: Temporary Pullback Before Bigger Rally Ahead

If Bitcoin approaches $95,000, traders should:

• Watch for smaller daily candles (a sign of stalling momentum)
• Monitor RSI and volume divergence
• Consider taking partial profits or tightening stop-losses

A pullback to $82,000 wouldn’t be bearish—it would be healthy market structure before a potential late-2025 surge to $173,000, according to longer-term projections.

---

📌 Conclusion: BTC in the Driver’s Seat—But Stay Alert Near $95K

Bitcoin’s current breakout is undeniably strong, but history and technicals suggest a pause may be near. If BTC hits $94.5K–$95K and momentum fades, expect a cooldown period through May and June, setting the stage for bigger gains later in the year.

📊 For more expert crypto forecasts, trading updates, and technical analysis, stay connected to www.dailyforex.pk.