The cryptocurrency market is showing signs of a shift in momentum, led by Ethereum (ETH), after Bitcoin (BTC) surged toward $87,500. On Wednesday, March 26, during the mid-European session, the total crypto market capitalization neared $3 trillion, boosting investor confidence.

In recent weeks, crypto prices have closely followed gold’s movement, reflecting a growing trend of investors using digital assets as a hedge against economic uncertainty. This comes ahead of the April 2 rollout of new U.S. reciprocal tariffs, which will also affect certain Canadian and Mexican goods.

Is the Crypto Market Ready for Recovery?

The recent crypto rebound has been fueled by large investors (whales) and improving macroeconomic conditions. A major boost came from U.S. spot Bitcoin ETFs, which ended a five-week losing streak with a $744 million cash inflow last week. So far this week, an additional $111 million has flowed into these ETFs, strengthening bullish sentiment.

Concerns over a major Bitcoin correction have eased, as reflected in the BTC Fear and Greed Index, which stood at 47% at the time of writing. However, market intelligence firm Santiment has warned that extreme optimism often leads to price drops.

“Remember that cryptocurrency markets have ALWAYS historically moved in the opposite direction of the crowd’s expectations. When you see your timeline filled with “to the moon” or “Lambo time”, be cautious about upcoming prices. When you see “crypto is dead” or “bitcoin is a scam”, this should be music to your ears,” Santiment noted.

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Bitcoin’s Next Moves: Rally or Pullback?

Since altcoins typically follow Bitcoin’s price action, they are likely to move in the same direction as BTC. From a technical analysis perspective, Bitcoin remains on an upward trend, with the next key resistance between $89,000 and $91,000.

If BTC closes consistently above $91,000, it could rally toward the long-awaited $100,000 mark, boosting the entire crypto market. However, if Bitcoin faces rejection at resistance, it may pull back toward $77,000 before attempting another move higher.

With shifting market conditions, investors should watch key price levels and broader economic factors to navigate the next phase of crypto trading.

Between the tweets and the trends, it’s easy to get swept away. But hey, that’s crypto for you – a bit of chaos, a dash of hope, and a whole lot of ‘what’s next?