TLDR
Bitcoin rallied nearly 20% in April, rebounding from annual lows around $70,000
ETF inflows have slowed, with small net outflows reported on Wednesday
Economic uncertainties remain due to Trump’s trade policies and unexpected US GDP contraction
Technical indicators suggest a major price move could be imminent
Bitcoin accumulation is increasing while exchange supply reaches a five-year low
Bitcoin has experienced a period of consolidation after a strong April rally, with prices hovering below the $95,000 mark as we enter May 2025. The world’s largest cryptocurrency has been moving sideways after recovering from its annual lows earlier this year.
Bitcoin’s recovery in April was impressive, with the cryptocurrency gaining nearly 20% and wiping out its previous losses for the year. This rebound brought Bitcoin from lows around $70,000 in March and April to current levels near $95,000.
The rally was fueled by several factors, including bargain hunting after the price drop and institutional investment through spot exchange-traded funds (ETFs). Data shows that Bitcoin ETFs recorded eight consecutive days of large inflows through late April.
However, this momentum has slowed in recent days. ETF flows have cooled, with data showing small net outflows of about $56.2 million on Wednesday.
Economic Headwinds
The cryptocurrency market continues to face uncertainties related to global economic conditions and trade policies. President Trump’s trade policies have created mixed signals for investors.
While Trump postponed steep reciprocal tariffs against major US trading partners by 90 days, he has escalated a trade war with China. This has dampened the global economic outlook.
Adding to these concerns, recent US economic data showed that the country’s economy unexpectedly shrank in the first quarter. This has increased anxiety about economic growth prospects.
Bitcoin, being largely speculative in nature, is influenced more by market sentiment than fundamental factors. The current economic jitters could impact crypto prices in the coming weeks if negative sentiment persists.
The #Bitcoin $BTC Accumulation Trend Score is nearing 1, signaling that larger entities, or a significant portion of the network, are actively accumulating. pic.twitter.com/eJavuF8Dmb
— Ali (@ali_charts) April 30, 2025
The broader cryptocurrency market has followed Bitcoin’s pattern, with most altcoins also trading in a narrow range. Ethereum rose marginally to $1,808.30 after underperforming its peers in April.
Other cryptocurrencies like XRP fell 1.7%, while Solana and Cardano moved within a 1% range. Among meme tokens, $TRUMP retained most of its over 50% surge from late April, while Dogecoin declined slightly.
Technical Indicators Point to Potential Breakout
Technical analysis suggests that Bitcoin may be preparing for a significant price move after this period of consolidation. The Bollinger Bands, a popular momentum indicator, have tightened on Bitcoin’s 4-hour chart, indicating reduced volatility that often precedes a major price movement.
Analysts note that if Bitcoin stays above the key support level of $93,198, it could potentially surge toward a new all-time high around $114,230 if it breaks above $95,870.
One intriguing long-term model suggests even more dramatic growth potential. A logarithmic analysis of Bitcoin’s age versus price indicates that Bitcoin’s value has historically increased sixfold when the network’s age increases by 40%. If this pattern holds, some projections suggest Bitcoin could reach over $350,000 in 2025.
While such projections should be viewed cautiously, they highlight the optimistic sentiment among some analysts regarding Bitcoin’s long-term trajectory.
On-chain data shows increasing accumulation by large holders. Whale activity has picked up, with these large investors acquiring approximately $4 billion worth of Bitcoin in just two weeks.
The Bitcoin Accumulation Trend Score has approached 1, indicating substantial purchasing by larger market participants. Meanwhile, the supply of Bitcoin on exchanges has declined to a five-year low, which typically signals reduced selling pressure.
Bitcoin is currently trading at $94,943.40, showing little movement in recent days as market participants await clearer directional signals.
