Bitcoin after overhead squeeze or test close to $90,000, but traders warn leverage risk is building

Bitcoin price returns to key median with market focus on $90,000 threshold

As Bitcoin enters a new round of gains, the market's eyes are turning to its next psychological breakout at $90,000.

Key price points of concern for institutions

Sondergaard, a researcher at the online data analytics firm Nansen, points to $87,000 as the next price worth paying attention to, followed by the psychological threshold of $90,000 and then looking upwards towards close to $92,000.[citation needed] Meanwhile, market trader Jasper De Maere from Wintermute also believes that it is possible for prices to test the $90000 level.

Recession breaks through under macroeconomic pressure

Significantly, the breakthrough comes after a week of turbulent macroeconomic and political environments. Prior to that, US crypto legislation was hampered by the CLARITY Act, while the Federal Reserve announced interest rate hikes and released biased policy signals.

The 50 week average is reset.

On the technical side, Bitcoin has regained its 50-week moving average. This long-term trend line is used by many traders as a strategic reference signal. DeMere of Wintermute said that in previous bear markets, this equity line had played a resistance role on several occasions.

DeMere believes that breaking this long-term trend line may provide some positive trading signals for traders.

Cautious optimism prevails

Despite the strong technical signals, traders remain cautiously optimistic overall.

Hyperion Decimus co-portfolio manager Chris Sullivan said that he sees this round as the beginning of a new bull market cycle, but also expects to see a significant reversal after it ends.

"This should be the first wave of bull market upswing", he said, warning that once this round runs out we will see a massive correction.

(Risk note: This article is for public information only and does not constitute any investment advice.