Bitcoin Faces Heavy Profit-Taking — Will $83,700 Resistance Hold or Break?

The cryptocurrency market, which had been under selling pressure due to tariff-related concerns earlier this week, showed signs of resilience on Friday, April 11. The rebound came after U.S. President Donald Trump announced a temporary halt to proposed tariffs for most countries, excluding China. This policy shift helped ease global market anxiety and lifted investor sentiment across risk assets—including crypto.

Bitcoin Reclaims Key Level Post-CPI Data

Bitcoin, the leading cryptocurrency in the world by market capitalization, surged back after a dip earlier in the week, rising as high as $82,300 before leveling out in the low $80,000 range, while at 10:09 AM Friday, Bitcoin was trading at about $80,834.74, down nearly 0.95% from yesterday. Bitcoin’s market cap is $1.6 trillion, and there was a solid trading volume this morning over 24 hours of $44.15 billion, according to CoinMarketCap.Positive momentum came following the release of softer-than-expected U.S. Consumer Price Index (CPI) data that showed inflation fell 0.1% in March, in what is the first month-over-month decline of inflation since May 2020, which sparked expectations for a possible interest rate cut by the Federal Reserve.

Analysts Caution: Profit Booking and Uncertainty Linger

In spite of the positive inflation figures, analysts saw that markets were swift to undertake some book profit. Giottus Crypto Platform CEO Vikram Subburaj pointed out that macroeconomic issues are still responsible for volatility in the crypto markets. He underlined that the likelihood of protracted tight monetary policy can suppress riskier assets such as Bitcoin. Meanwhile, conventional safe-haven assets such as gold have hit new highs, which represents a more general “risk-off” sentiment among investors.

Subburaj further said that Bitcoin would have to cross above the $87,200 level—where a number of important moving averages meet—to reassert a clear bullish trend. Until that happens, the market will be cautious.

Whale Activity Signals Underlying Confidence

While bitcoin has had some recent volatility in prices, on-chain data shows that large bitcoin holders (often referred to as “whales”) began to increase their activity. According to blockchain analytics company CryptoQuant, wallets that hold between 1,000 and 10,000 BTC are increasing at a pace above the thirty-day average. This seems to suggest strong long-term comfort and confidence among institutional or high-net-worth investors to be holders of bitcoin. Mudrex Co-founder and CEO Edul Patel chimed in that bitcoin was facing resistance at $83,700, with support moving between the $75,000 level.

Ethereum, XRP, and Altcoins: Mixed Performance

Ethereum (ETH), the second-largest cryptocurrency in terms of market capitalization, fell 3.77%, trading at slightly more than $1,548.00. Ripple (XRP) experienced a slight increase of 1.35%, while Binance Coin (BNB) fell 0.79% and Solana (SOL) increased slightly by 0.42%.

Stablecoins were also slightly down. Tether (USDT) – the largest USD-backed stablecoin – was 0.04% down to $0.9993.

Outlook: Short-Term Relief, Long-Term Uncertainty

Despite the reprieve Friday’s rally gave traders from recent turbulence, observers are still wary. Macro issues such as geopolitical tensions and the Fed’s monetary action may continue to drive crypto prices. However, persistent whale activity and improving sentiment could lead to bullish price action if crypto can continue to breach above key resistance levels again.