CRYPTO MARKET UPDATE

Bitcoin Blasts Past $84K Before Retracing to $81K: What's Next for BTC?

In an explosive move that rocked the crypto markets, Bitcoin (BTC) surged over 12%, climbing from around $74,000 to a new all-time high of $84,000 within hours. However, the rally cooled slightly as BTC retraced to hover near $81,000 at the time of writing. The dramatic spike has stirred the market with equal parts excitement and caution as investors look ahead to what could be the most pivotal weeks of 2025.

What Fueled the Surge?

Several key catalysts lit the match for this price eruption. The most notable was a surprise tariff rollback announcement by former President Donald Trump, who’s currently leading a renewed campaign trail with a more market-friendly tone. The rollback sparked optimism in broader risk markets, particularly in crypto, which often responds bullishly to macroeconomic policy shifts that promise lower trade friction and capital flow constraints.

Coupled with that was growing momentum around Bitcoin spot ETFs. BlackRock CEO Larry Fink’s timely “buy the dip” comment earlier in the week turned out to be prophetic. The ETF flows have continued to show robust institutional demand, bolstering the narrative that Bitcoin is entering a phase of mainstream financial integration.

Altcoins Join the Party

The bullish sentiment wasn’t limited to Bitcoin alone. Leading altcoins such as Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) rode the wave, posting impressive double-digit gains. Ethereum flirted with the $4,800 level, SOL touched $195, and DOGE’s meme-fueled madness once again pushed it above $0.25, thanks in part to Elon Musk's subtle yet suggestive tweet about “revolutionary payments coming soon.”

Caution Signals: Binance BTC Deposits Spike

Despite the euphoria, savvy traders are watching key on-chain and exchange indicators. One major red flag: Binance BTC deposits surged to $1.34 billion, the highest level seen in months. Historically, spikes in exchange deposits can indicate increased intent to sell, as whales and institutional holders move coins out of cold storage in preparation for potential exits.

This suggests a possible short-term correction or at least a consolidation phase as the market digests the recent gains.

Technical Levels to Watch

Resistance: $88,800

The next major resistance is sitting at $88,800. A clean breakout above this level would validate the bullish momentum and likely accelerate the push toward the psychological milestone of $100,000. The current price structure, volume patterns, and bullish sentiment provide a supportive backdrop, but a confirmed break will require sustained institutional inflows and strong macro tailwinds.

Support: $80,000 and $73,500

On the flip side, $80,000 now acts as a near-term support level. A break below this could trigger a steeper correction, with the next major support coming in at $73,500, which was the previous consolidation zone before the recent breakout. A dip to that level could offer a strong “buy the dip” opportunity if fundamentals remain intact.

Macro Outlook & Market Sentiment

This rally underscores a broader shift in market sentiment. With the Fed expected to pause or even cut rates later in the year, coupled with increasing regulatory clarity and institutional participation, Bitcoin’s appeal as a macro hedge and store of value continues to grow.

However, volatility remains a core feature of crypto. Traders are reminded that while the upside potential is enormous, especially if BTC clears $88.8K, the risks are equally real—particularly if geopolitical tensions flare up again or ETF flows stall.

Conclusion: Is $100K Inevitable?

The path to $100,000 is now firmly in sight. The combination of macro tailwinds, institutional momentum, and surging retail interest is creating the perfect storm for Bitcoin to enter six-digit territory. But as always in crypto, the road is never straight.

With $88.8K as the next battleground, and $80K–$73.5K serving as key supports, all eyes are on how BTC performs over the coming days. Whether you're a HODLer, a trader, or a new entrant, buckle up—the next phase of Bitcoin's journey could be its most historic yet.