Bitcoin Price Analysis: BTC Continues Consolidation Phase As Markets Turn Cautious

Bitcoin (BTC) continues to trade around $95,000, marginally down over the past 24 hours as it struggles to break the resistance between $95,000 and $96,000. A break above these levels could take the flagship cryptocurrency to the elusive $100,000 mark. 

Despite BTC’s recent sluggishness, on-chain data indicates a healthy market structure. However, upcoming macroeconomic data releases could impact prices as traders adopt a cautious approach. 

Bitcoin Is Like Gold: Howard Lutnick 

US Secretary of Commerce Howard Lutnick believes Bitcoin has a powerful future in America, with the federal government fully behind the asset. Lutnick stated in an interview, 

“What is Bitcoin like? It’s like gold, right? It was treated under the Biden administration like you were doing something wrong. Now you have that sort of in the rearview mirror, and it’ll never come back.”

Lutnick is a longtime Bitcoin supporter, and discussed his journey with the flagship cryptocurrency, emphasizing that its rarity was one of the key reasons behind its enduring value. Today, Lutnick plays a key role in shaping the Trump administration’s policy and stance towards Bitcoin, spearheading efforts to create a Bitcoin Strategic Reserve, one of Donald Trump’s most ambitious campaign promises. Lutnick is also deeply invested in the “Investment Accelerator” at the Commerce Department. The “Investment Accelerator” aims to help billion-dollar-plus investments navigate regulations and permits. 

Lutnick also discussed Bitcoin mining, stating that miners will be able to build private power plants alongside their mining facilities. According to Lutnick, this would reduce dependence on public energy grids and enable cheaper, off-grid energy sources like hydroelectricity or flare gas capture. 

“You’re going to see miners putting data centers right on top of gas fields. This will turbocharge Bitcoin mining in America.”

Arizona Passes Strategic Bitcoin Reserve Bill 

Arizona has become the first US state to pass legislation establishing a Strategic Bitcoin Reserve after a key voting session by the state legislature on April 28. The Arizona House approved Senate Bill 1025 by a vote of 31-25. The bill was sponsored by Republican Senator Wendy Rogers, and advocates incorporating cryptocurrency into state-level financial strategy. It also permits the state treasury to invest up to 10% of public funds in Bitcoin. The legislature also approved a companion measure, SB1373, by a vote of 37-19. SB1373 proposes establishing a reserve fund run by the state treasurer using assets seized during civil and criminal proceedings, with a broader focus on digital assets. 

Supporters argue a Bitcoin reserve could help diversify state assets, help protect against inflation, and prepare the state for a blockchain-driven financial future. SB1025 mandates that Bitcoin must be kept in a segregated Federal Reserve account. On the other hand, SB1373 allows the state treasurer to lend assets from the fund but keep risk to a minimum. However, the bills must now pass Democratic Governor Katie Hobbs. Governor Hobbs has said she will veto every bill until the Republican-controlled legislature passes a “serious, bipartisan funding solution that protects healthcare for Arizonians with disabilities.” 

“It’s shameful that a few extreme Republican legislators are holding funding for Arizonans with disabilities hostage to their political theater. Business as usual cannot continue until Arizonans with developmental disabilities and their caregivers have the certainty they need.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) briefly crossed $95,000 but fell back as a familiar trajectory played out. The flagship cryptocurrency crossed $95,000 thrice over the past three days but has consistently lost momentum above this level as selling pressure continues to overwhelm buyers at higher levels. A breakout above $95,000-96,000 could see BTC reach $100,000. However, a break above these levels remains elusive for now. Investors are waiting for a fresh catalyst to dictate price action. However, technical indicators and on-chain data suggest BTC could enter a period of consolidation. 

Analysts state that despite BTC’s recent sluggishness, on-chain data indicates a healthy market structure. According to market researcher Axel Adler Jr., Bitcoin’s year-over-year realized price has skyrocketed over 61%. This metric implies that long-term BTC holders are boosting the asset’s floor price faster than speculative price movements, producing a “mature bull trend.” 

Meanwhile, the markets and Bitcoin face a crucial week, with critical data reports set to be released, possibly impacting BTC’s price trajectory. The week has four consecutive days of crucial jobs data and reports, starting with the Job Openings and Labor Turnover Survey (JOLTS) on April 29. The Core Personal Consumption Expenditures (PCE) inflation data will be released on April 30, while the ISM Manufacturing PMI and the Jobs report will be released on May 1 and May 2. 

However, despite substantial gains over the past few weeks, the $100,000 ceiling remains intact. BTC has failed to reclaim $100,000 since February, settling into a drawn-out consolidation phase. During this time, the flagship cryptocurrency made an impressive 30% recovery, rising from a low of $74,400 to its current level. However, the overhead resistance is hindering a further price jump. Analysts believe BTC will be confined to a narrow trading range between $90,000 and $95,000 for the foreseeable future until a catalyst drives it out of its present range. 

BTC’s price action was mixed over the previous weekend, registering a marginal decline on Friday (April 18). The price recovered over the weekend, rising 0.61% on Saturday and 0.22% on Sunday to reclaim $85,000 and settle at $85,224. BTC continued to push higher on Monday, rising almost 3% to cross $87,000 and settle at $87,508. Bullish sentiment intensified on Tuesday as BTC rallied nearly 7%, surging past $90,000 and settling at $93,373. However, the rally lost momentum on Wednesday after encountering volatility and selling pressure. Despite this, the flagship cryptocurrency registered a marginal increase, settling at $93,789.

Source: TradingView

BTC fell to an intraday low of $91,693 on Thursday as sellers attempted to overwhelm buyers. The price rebounded from this level to register a marginal increase and settle at $94,009. BTC continued to push higher on Friday, increasing almost 1% to $94,776. However, the price lost momentum over the weekend, registering a marginal decline on Saturday and dropping 0.99% on Sunday to settle at $93,802. BTC started the current week positively, rising 1.29% to reclaim $95,000 and settle at $05,010. However, the flagship cryptocurrency is marginally down during the ongoing session as buyers and sellers struggled to establish control. Buyers will look to build momentum and break past the overhead resistance. A move past this level could see BTC cross $100,000. However, if sellers regain control, the flagship cryptocurrency could decline to $90,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.