Bitcoin (BTC) is currently under significant bearish pressure, finding it difficult to surpass the $85,000 level due to macroeconomic uncertainties impacting the market. Since late January, BTC has experienced a decrease of over 29% in value, causing investors to become increasingly concerned about further declines. The global trade war fears and unstable macroeconomic conditions have created pressure on both the cryptocurrency and U.S. stock markets, leaving traders unsure of Bitcoin’s next major move.
Despite the downward trend, some analysts are optimistic about a potential market reversal. Renowned analyst Ali Martinez has highlighted the rapid expansion of global liquidity as a positive factor. Historically, this expansion has acted as a bullish catalyst for Bitcoin, often resulting in significant price surges when liquidity enters the market. If this historical pattern continues, BTC may experience renewed buying interest in the upcoming weeks.
Nevertheless, in the short term, bears maintain control, and BTC must reclaim crucial technical levels before any recovery can take place. If macroeconomic conditions remain uncertain, Bitcoin’s downward pressure may persist, potentially leading to tests of lower support levels before any significant rebound. The next few weeks will be crucial in determining whether BTC can stabilize or face further losses.
Bitcoin Reaches Lowest Levels Since November 2024
Bitcoin (BTC) is currently trading at its lowest levels since November 10, 2024, with bulls struggling to regain dominance. The market has been in a sustained downtrend since late January, with increasing fear driving prices lower, prompting many investors to question the sustainability of the Bitcoin bull cycle. With BTC unable to break through key resistance levels, sentiment remains predominantly bearish, raising the likelihood of further declines in the near future.
Despite the ongoing decline, Martinez’s insights on X suggest that global liquidity is rapidly expanding. Liquidity growth has historically driven Bitcoin price increases, and if historical trends continue, BTC could see a resurgence around mid-April. However, for this scenario to unfold, bulls need to defend critical support levels and regain momentum in the weeks ahead.
The ongoing market downturn has been heavily influenced by macroeconomic uncertainties and increased volatility since the U.S. elections in November 2024. Concerns about global trade wars, unstable economic policies, and unpredictable market reactions have made it challenging for risk assets like Bitcoin to maintain any significant upward momentum. With these macroeconomic concerns unresolved, Bitcoin is likely to face continued pressure until there are signs of improvement in market conditions.
Currently, bulls face a significant challenge in reversing the bearish trend and pushing BTC back above critical technical levels. If liquidity expansion leads to renewed buying pressure, the market could witness a recovery. However, if macroeconomic conditions remain unfavorable, Bitcoin may continue to trend downward in the short term.
Bitcoin Struggles to Reclaim $85K
Bitcoin is currently trading at $83,300, with bulls struggling to regain momentum after facing weeks of selling pressure. The key level for a potential recovery remains at $85,000, closely aligned with the 200-day moving average (MA). Failure to surpass this level soon may prolong bearish sentiment, increasing the risk of further downward movement.
BTC struggles below the 200-day MA | Source: BTCUSDT chart on TradingViewTo initiate a recovery rally, Bitcoin bulls must promptly surpass the 200-day MA. A successful break above this level would signal renewed buying interest, potentially leading to a strong movement towards higher resistance levels. However, BTC’s struggles at this technical barrier indicate weak market confidence, with traders hesitant to enter long positions amidst growing uncertainties.
Failure to reclaim the 200-day MA in the upcoming days significantly increases the risk of a sharp drop below $80,000. Such a breach could trigger more selling pressure, pushing BTC towards lower demand zones. The next few trading sessions will be pivotal in determining whether Bitcoin can reverse its recent losses or if the downtrend will continue into deeper levels.
Featured image from Dall-E, chart from TradingView
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