Bitcoin (BTC) Price Recovers From Correction, Shows Early Signs of Recovery

Bitcoin has begun showing early signs of recovery following a recent correction that saw the asset fall to $74,000 earlier this month.

Bitcoin (BTC) has begun showing early signs of recovery following a recent correction that saw the asset fall to $74,000 earlier this month. At the time of writing, Bitcoin trades above $82,000, inching closer to the $85,000 range with its market capitalization now sitting above $1.6 trillion.

Bitcoin price volatility remained high throughout the week as trade tensions and macroeconomic developments continued to influence market sentiment. Prices dipped sharply earlier in the week with the introduction of retaliatory tariffs by China and the European Union.

However, they began recovering on April 9 following the suspension of tariffs. The temporary policy reduced tariffs to 10% for most countries, while China remained subject to a 125% rate.

Bitcoin Technical Support and Market Sentiment

According to a recent market report by CryptoQuant, Bitcoin’s 365-day moving average (MA) at $76,100 is a key technical support level that has been observed in previous market cycles.

This level was touched upon in August 2024, July 2021, and December 2021, and the recent bounce from this MA is being monitored as a potential base for a renewed uptrend.

A breach below this moving average would increase the likelihood of Bitcoin entering a bearish phase. However, despite this positive movement, investor sentiment remains subdued.

“Nevertheless, although market sentiment has improved after the tariff pause, Bitcoin remains in one of its least bullish phases since November 2022, according to our Bull Score Index. The Index is now at 10—its lowest reading since that time—signaling continued weak investor sentiment and a low probability of a sustained rally in the near term.”

According to the firm, a longer-term rally is unlikely unless the score climbs above 40.

Furthermore, with BTC’s price currently on the rise, CryptoQuant mentioned that the asset could find resistance at $84,000 and $96,000—zones historically linked to the Trader Realized Price, which has served as both support and resistance in different market phases.

Altcoin Accumulation Signal Emerges

In another analysis, CryptoQuant analyst Darkfost highlighted data that may indicate favorable conditions for altcoin accumulation.

According to his commentary, the 30-day moving average of trading volume for altcoins paired with stablecoins has dropped below its annual average. This market behavior, according to Darkfost, has previously marked buying zones, with the last occurrence seen in September 2023.

The analysis suggests that while Bitcoin’s immediate trend remains uncertain, altcoins may be entering a phase conducive to dollar-cost averaging (DCA) strategies.

“These windows of opportunity usually open when capital is largely absent from the market, and in this case, we can observe it with low trading volumes in the altcoins-stablecoins pair, an indicator that has historically marked these buying zones.”

According to the analyst, these windows can last for weeks or months but have historically aligned with the early stages of altcoin market recoveries. If the macroeconomic environment stabilizes and capital flows return, these conditions could lead to broader participation across the crypto sector.