As April approaches, traders are closely monitoring whether Bitcoin can maintain its current upward momentum or will face another volatility wave. The top cryptocurrency is trading at $87,208, recording a 10% increase over the past two weeks.

With the broader market recovery underway, BTC demand may strengthen in April, and its price could steadily recover and potentially retest the range of $90,000–$95,000.

Bitcoin's Market Dip? Analysts Say Current Levels Signal a Recovery

Bitcoin (BTC) started March with a strong surge, spiking to a high of $96,484 on 02/03/2025. However, as market sentiment shifted to a downward trend, profit-taking increased, pulling the top coin down to a four-month low of $76,642 on 11/03/2025.

Since then, Bitcoin has recovered thanks to the broader market recovery and new demand. The coin is currently trading in an ascending parallel channel, a pattern indicating a gradual BTC price increase as buying momentum rises.

In an exclusive interview with BeInCrypto, Julio Moreno, Head of Research at CryptoQuant, confirmed this price appreciation prospect.

"There could be a Bitcoin price surge in April as selling pressure from traders diminishes," Moreno said.

Moreno assessed BTC's Realized Profit/Loss Margin and found it has been steadily declining since the year's start. As this index drops, the overall profit of BTC coins spent on-chain is decreasing.

This means investors are realizing fewer profits or even experiencing losses, reducing the motivation to sell. Over time, this trend will gradually decrease selling pressure on the BTC market and push its price up in the coming weeks.

"With Bitcoin having dropped 23% from its previous ATH, traders would only incur losses if they sell. This situation typically indicates less selling pressure for Bitcoin. In fact, the current trader's unrealized profit margin is -13%, a level often associated with local price bottoms. This could easily drive the price to the $90,000 zone," Moreno added.

Selling Pressure Could Spike as Sentiment Worsens

Notably, as the market attempts to recover, bearish sentiment remains significant among traders.

"The overall market sentiment remains bearish, as seen in CryptoQuant's Bull Score Index. The index touched 20 a few days ago—its lowest since 01/2023—indicating weak market conditions. This raises concerns that the recent price drop might be part of a broader downward trend rather than a short-term correction," Moreno explained.

He also noted that historically, Bitcoin only experiences sustainable price surges when the Bull Score is above 60, while consistently low indices below 40 are typically associated with bear markets.

The Crypto Fear and Greed Index reflects this perspective. At the time of writing, the index is at 40, indicating the market is currently in a state of fear.

When traders are this fearful, it leads to increased selling pressure, decreased BTC trading volume, and triggers price drops.

Will Bitcoin Hold Above $87,000 or Drop to $77,000?

BTC is trading at $87,208 at the time of writing, up 2% for the week. On BTC/USD's daily chart, the coin's Relative Strength Index (RSI) is just above the neutral line at 51.48, indicating a gradual recovery in new demand for the king coin.

The RSI measures an asset's overbought and oversold market conditions. It oscillates from 0 to 100. Values above 70 indicate an asset is overbought and may decline, while values below 30 suggest the asset is oversold and may recover.

With the RSI at 51.48 and showing a slight upward trend, this suggests BTC's price momentum is increasing in the market. If demand strengthens, the coin's price could rise to $89,434. If it breaks through this resistance level, it could trigger a price surge up to $93,478.

However, if selling continues, BTC's price could drop to $77,114.