Bitcoin Reclaims $85K: Will It Recover to $90K?

Bitcoin’s recent price action has captured the attention of investors as it surged past $85K, marking its highest point since March 9. After months of volatility, BTC is showing signs of recovery, boosted by macroeconomic shifts and institutional support. The real question now is: Can Bitcoin push past the $90K mark?

The Fed's Role in Bitcoin's Surge

One of the primary catalysts for Bitcoin’s price surge is the Federal Reserve’s decision to maintain interest rates steady at 4.25%-4.50%. Leading up to the Federal Open Market Committee (FOMC) meeting, there was speculation about whether the Fed would hike rates again. When they chose to pause, it provided much-needed stability for risk assets like Bitcoin.

A more accommodative stance from the Fed typically supports assets like Bitcoin, which can benefit from a favorable macroeconomic environment. As a result, Bitcoin broke through several key resistance levels following the announcement, climbing to a 10-day high. Additionally, the SEC's decision to drop charges against Ripple helped fuel broader market optimism, making the case for Bitcoin to continue its rally.

Institutional Support and Whale Activity

Bitcoin’s price growth isn’t just a result of retail enthusiasm—it’s also driven by institutional players. Recent data from Bitcoin ETFs shows a shift from a three-week sell-off to a solid influx of funds. Over the past three days, Bitcoin ETFs saw $512 million in cumulative inflows, marking the first time since January that they’ve experienced three consecutive days of positive net inflows.

On-chain data also suggests that Bitcoin whales have significantly increased their buying activity in the days leading up to the Fed's decision. Large transactions, those over $100K, have surged by 40%, reaching a total of $42.9 billion. This institutional interest is a strong indicator that Bitcoin is gaining traction among serious investors, further supporting its recent price movement.

Is Bitcoin Heading to $90K?

With institutional interest ramping up and the favorable macro backdrop, many are now wondering if Bitcoin can surpass $90K. According to market analysts, Bitcoin’s current trajectory suggests that it totally could be possible. Markus Thielen, CEO of 10x Research, predicts that Bitcoin could experience a counter-trend rally due to oversold conditions. While he notes that this isn’t a major bullish signal, Thielen suggests that the possibility of a return to $90K remains on the table.

Technical indicators also back this prediction. The daily chart shows Bitcoin’s prolonged downtrend since its high of $106,447 on January 29. For a meaningful recovery, Bitcoin needs to break through resistance levels at $85K–$86K, and if that happens, targets of $88K–$90K seem increasingly likely. Holding steady above $80K–$82K would further bolster positive sentiment in the market, making a return to $90K even more plausible.

For now, the Bitcoin market is looking strong. With inflation concerns easing in the U.S. and investors closely watching the Fed's next moves, there is a real possibility that Bitcoin could reach new highs.

However, as always, only time will tell whether Bitcoin can break through the $90K barrier and sustain its upward momentum. Investors should keep an eye on the key support and resistance levels in the coming weeks—this will be crucial in determining whether Bitcoin's current rally is just the beginning.