Bitcoin (BTC) spiked over 2.4% to reach $88,000 today, but the rally might not last long. The sudden and unexpected surge—especially during Easter Sunday and the extended holiday weekend—sparked a noticeable shift in market sentiment among crypto traders.
The mood in the market flipped rapidly—from fear, uncertainty, and doubt to outright greed. Some analysts are now claiming this could be the final opportunity to buy Bitcoin before it climbs to $100,000, or even hits the $200,000 mark forecasted by Robert Kiyosaki.
However, the sobering truth is that this sudden rally could be nearing its end. While several factors point to this possibility, three key reasons stand out.
The first reason is that following today’s spike, Bitcoin’s price reached the 200-day moving average on the daily chart. While BTC previously broke above this key level in March, it retested it in early April, was rejected, and has now touched it again—only to face another failure to break through.
The second reason is also technical and relates to the Bollinger Bands. Interestingly, the upper band of this widely-used indicator aligned precisely with the 200-day moving average on the daily chart. After the surge, Bitcoin touched this upper band, which often suggests the asset may be in an “overbought” condition.
Lastly, the third reason involves the RSI indicator on the weekly chart, which has reached a trendline resistance that has remained intact since a previous bearish divergence. A closer comparison shows similarities to the setup seen in September 2024. However, unlike then—when Bitcoin broke above the resistance—this time it has merely touched it.
Add to that the buzz around gold hitting all-time highs, the growing belief that Bitcoin could be next, and Michael Saylor’s $555 million BTC purchase — and it’s clear that optimism is running high. But these very conditions could also set the stage for a sharp and punishing sell-off that catches overly eager investors off guard.
