Technical and Market Indicators Suggest Bitcoin Could Enter a New Bullish Phase

As of April 2025, multiple on-chain metrics and macroeconomic factors are aligning in a way that historically precedes bullish reversals for Bitcoin. The cryptocurrency has shown resilience after recent corrections, with key support levels holding strong. Network activity indicates accumulation by long-term holders, while miner capitulation metrics have reset to levels seen before previous rallies. Additionally, the upcoming halving cycle’s supply shock is expected to take full effect in the coming months. Liquidity conditions are improving as institutional products see renewed inflows, and derivatives markets reflect a healthier balance between longs and shorts. These factors, combined with broader adoption trends and regulatory clarity in major markets, create a compelling case for Bitcoin’s next upward trajectory.

Ministers in London have explicitly ruled out establishing a Bitcoin reserve, arguing that this asset is too volatile. Yet at the same time, it hasn’t resorted to auctioning off these coins to free up cash for the Treasury — even though the chancellor, finance minister Rachel Reeves, has had to introduce a plethora of unpopular policies to plug a “fiscal black hole” left by her predecessors.

This puts the U.K. in a bit of an awkward halfway house. It isn’t selling this Bitcoin, nor publicly committing to holding onto it. Confirmation of either of these scenarios has the potential to hugely alter BTC’s price — one way or another.

But the creation of strategic crypto reserves could prove most significant in countries that don’t own a single satoshi. Should a central bank decide to shift some of its holdings into Bitcoin — but not have the benefit of already having a warchest confiscated from criminals — they wouldn’t have a choice but to buy.

Even rumours of a country being prepared to make this plunge could see BTC shoot higher — and fuel hopes that the world’s biggest digital asset is finally being regarded as sound money in corridors of power.

There is one potential fly in the ointment: America doesn’t hold anywhere NEAR as much influence as it did when Donald Trump took power on January 20.

Investors are now racing to dump their exposure to dollars and stocks on Wall Street — with the president’s pursuit of tariffs causing the U.S. to widely be regarded as an unreliable trading partner.

In any case, the European Union has made it clear that it has no desire to follow in America’s footsteps. At a recent news conference after the ECB confirmed that interest rates will be cut for the third time this year, Christine Lagarde stressed that the trading bloc sees its future in the digital euro — and not Bitcoin.

And as I’ve mentioned in past pieces, there are some Bitcoiners who remain deeply uncomfortable at the prospect of governments snapping up BTC in the first place.