Bitcoin (BTC) is under significant bearish pressure, having difficulty surpassing the $85,000 mark as macroeconomic uncertainties impact the market. Since the end of January, BTC has dropped over 29% in value, leading investors to become increasingly concerned about further declines. Fears of a global trade conflict and unpredictable macro conditions have added pressure on both cryptocurrency and U.S. stock markets, leaving traders uncertain about Bitcoin’s next significant move.
Despite the ongoing downtrend, some analysts believe a market reversal may be on the horizon. Leading analyst Ali Martinez shared thoughts on X, highlighting that global liquidity is increasing at a rapid pace. Historically, this expansion has acted as a bullish trigger for Bitcoin, often resulting in substantial price increases when liquidity enters the market. If this trend continues, BTC might experience enhanced buying interest in the weeks to come.
However, bears continue to dominate in the short term, and BTC needs to reclaim crucial technical levels for a recovery to commence. If macroeconomic conditions remain unclear, Bitcoin could stay under pressure, potentially testing lower support levels before any significant rebound occurs. The next few weeks will be vital in determining if BTC can stabilize or if further declines are imminent.
Bitcoin Reaches Lowest Levels Since November 2024
Currently, Bitcoin (BTC) is trading at its lowest levels since November 10, 2024, with bulls battling to regain control. The market has been entrenched in a robust downtrend since late January, and prevailing fear continues to drive down price targets, leaving many investors to question whether the Bitcoin bull cycle is at an end. As BTC struggles to reclaim vital resistance levels, the sentiment remains decidedly bearish, elevating the risks of further declines in the forthcoming weeks.
Despite the ongoing slump, Martinez’s insights on X indicate that global liquidity is expanding rapidly. Historically, liquidity growth has catalyzed price increases for Bitcoin, and should past trends continue, BTC could align with this growth around mid-April. However, for this scenario to materialize, bulls must defend vital support levels and regain momentum in the upcoming weeks.
The overall market decline has been heavily influenced by macroeconomic uncertainty and rising volatility since the U.S. elections in November 2024. Concerns surrounding global trade disputes, inconsistent economic policies, and erratic market responses have made it challenging for risk assets like Bitcoin to maintain any substantial upward momentum. Since these macroeconomic concerns are still not resolved, Bitcoin is expected to remain under pressure until market conditions show signs of improvement.
Currently, bulls face a significant challenge to reverse the bearish trend and push BTC back above key technical benchmarks. If liquidity expansion sparks renewed buying activity, the market could witness a recovery. However, if macro conditions remain adverse, Bitcoin might continue its short-term downward trajectory.
Bitcoin Faces Challenge to Reclaim $85K
Bitcoin is trading at $83,300, with bulls facing challenges to regain momentum following weeks of selling pressure. The crucial level for a potential recovery is $85,000, corresponding closely with the 200-day moving average (MA). If BTC fails to break above this threshold soon, the bearish sentiment is likely to persist, increasing the risk of further declines.
For Bitcoin to kickstart a recovery rally, bulls need to push above the 200-day MA swiftly. A decisive break and closure above this level would indicate renewed buying interest, possibly propelling a stronger move toward higher resistance areas. Nevertheless, BTC’s difficulties at this technical resistance reflect a lack of market confidence, leaving traders wary of entering long positions amid rising uncertainties.
Should Bitcoin fail to reclaim the 200-day MA in the coming days, the risk of a sharp decline below $80,000 would significantly increase. A breach of this psychological level could initiate additional sell-offs, driving BTC toward lower demand regions. The ensuing trading sessions will be crucial in deciding whether BTC can recover from its recent losses or if the downtrend will continue into deeper territory.
Featured image from Dall-E, chart from TradingView
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