$84,500 Resistance Break! Can Bitcoin Reclaim Its Status Amidst Rising Inflation Fears?

Bitcoin has returned to the frontlines of economic discussions as the experts weigh in on its potential as a Bitcoin inflation hedge. Investors have long viewed BTC as a store of value, but new insights from Standard Chartered state that Bitcoin’s growing connections to traditional finance could lead to a new positioning. Some analysts even contend that Bitcoin doesn’t function as a hedge in severe economic conditions but rather more like a tech stock. With anxiety around inflation and markets rattled by potential US tariffs, traders of all stripes will be looking for clues if Bitcoin is leading the charge or following the market.

Bitcoin: A Tech Stock in Disguise?

For quite a while, Bitcoin has been compared to gold, but that story has shifted. Standard Chartered has observed that BTC is becoming more correlated with the major stock indices, such as the NASDAQ, meaning it is acting more like a tech investment than a financial asset. Recently launched Bitcoin ETFs have helped propel that idea, as crypto is now being attached to traditional finance. While this does give credence and more investors to the space, it does mean that BTC is now influenced by the stock market. If the tech sector pulls back, will Bitcoin follow, or will it break those correlations and reclaim its unique status as a Bitcoin inflation hedge against economic dislocation?

Inflation Worries and Bitcoin’s Next Move

As inflation continues to run higher than expected and global markets gear up for potential changes to US tariffs, uncertainty is higher than ever. With investors looking for things to hold up against these global pressures, Bitcoin is in the spotlight as a Bitcoin inflation hedge. Although BTC carries a short-term correlation to traditional markets that can lead to some volatility, it has decidedly long-term appeal, pursuing its status as a decentralized alternative. As economic pressures grow, Bitcoin’s price action will soon reveal if it can function as a hedge or just another risk asset, riding the waves of the market. Let’s take a look at the latest price action and technical setups.

Price Analysis and BTC Price Prediction

Bitcoin’s price action on the 5-minute chart indicates a strong uptrend earlier in the session, forming an uptrend channel before experiencing a breakout and a sharp price spike. However, after testing, the resistance level near $84,500 BTC faced selling pressure, leading to a gradual decline. Throughout the rally, the RSI presented multiple overbought signals and suggested a correction was about to happen. After the breakout, RSI retraced into the oversold area which confirms a short-term retracement. The MACD indicator also showed multiple death crosses adding more confirmation to the bearish momentum.

Chart 1, Analyzed by Alokkp0608, published on April 2nd, 2025.

Currently, Bitcoin is trading around $84,000, testing the previously broken resistance as a support level. The market sentiment suggests uncertainty, with BTC hovering between the resistance zone and a potential support level near $82,200. If BTC maintains this level, another upward attempt could be possible. However, failure to hold above the support may trigger further selling pressure. The MACD’s recent golden crosses indicate a possible reversal attempt, but bulls need to regain momentum. 

Bitcoin’s Next Move: Hedge or Hype?

Bitcoin is at an important juncture as it balances its role as a Bitcoin inflation hedge and its growing correlation with traditional markets. While Standard Chartered believes BTC behaves like a tech stock, it remains a unique decentralized asset. In recent price action, we saw Bitcoin rally within an uptrend channel, break out near $84,500, face selling pressure, and retest support at approximately $84,000.

The RSI showed overbought signals, followed by an oversold dip, while MACD death crosses reinforced bearish momentum. If BTC can hold above $82,200, it could try to rally again. However, if BTC breaks down below that level, the price may target lower levels. The BTC price prediction indicates that traders should monitor confirmation from signals like MACD and RSI to ascertain the subsequent course of action.

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