Bitcoin Runs Despite War Fears, Will It Break Through the 'Magic' $79,000 Resistance?

▲ US, Iran, Bitcoin (BTC)/AI generated image ©

Bitcoin (BTC), which has broken free from a persistent long-term bear market, is preparing for a further rally, recording its best monthly performance in a year, buoyed by massive stablecoin liquidity and a strong New York stock market.

According to cryptocurrency media outlet CoinDesk on April 25 (local time), Bitcoin has risen more than 13% this month alone, firmly maintaining the $77,000 level. This marks a dramatic rebound for the virtual asset market, ending a continuous monthly decline from October last year to February this year, the longest streak since 2018.

One of the powerful drivers of this rally is the explosive increase in the supply of Tether (USDT), which serves as a key funding source for the virtual asset market. Tether's market capitalization, after months of stagnation, surged by $5 billion in the past two weeks, approaching $150 billion. Experts interpret this stablecoin growth as a very healthy price increase signal, indicating a massive influx of new capital into the blockchain economy.

The overall macroeconomic sentiment is also providing sideways support for Bitcoin's rise. Jasper de Maeyer, an OTC trader at Wintermute, diagnosed that the market is too fatigued to react to geopolitical tensions in the Middle East or complex war news. Instead, strong corporate earnings announcements and a robust stock market recovery, consistently hitting new highs, are offsetting concerns about rising energy costs and boosting risk asset sentiment, according to the analysis.

Currently, the biggest challenge for Bitcoin is whether it can break through the $79,000 resistance line, where a large volume of institutional investor selling orders are concentrated. Adam Hams, Head of Asset Management at Tesseract Group, emphasized that a solid trend reversal is only possible if it is supported by sustained institutional demand, not just an artificial rise due to temporary short covering.

The market's attention is now focused on the upcoming Federal Open Market Committee (FOMC) regular meeting in April. If the inflow of funds into spot Exchange Traded Funds (ETFs) continues from this meeting, $79,000 could turn from strong resistance into a new support level. However, if buying momentum cools, Bitcoin is expected to fall back into the $75,000 to $77,000 range.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*