Bitcoin’s plan to regain $94,000 has run into a problem, and experts say there will be tough resistance ahead. It was unsuccessful in staying above this important level on March 2. The biggest coin in the world is still under a lot of pressure. Even though Bitcoin went up after Donald Trump said he was open to cryptocurrencies, it has had trouble keeping up its pace, which points to a bearish short-term outlook.
Trump’s Crypto Announcement Loses Momentum
After Trump promised a crypto reserve, Bitcoin’s price went from $85,000 to $95,000 on March 1. But the rise didn’t last long. On March 2, selling pressure quickly pushed Bitcoin below $94,000. Bitcoin’s cryptocurrency price is now $87,190, almost 8% less than its recent high.
Analysts at Bitfinex think that any attempt to return to $94,000 will probably fail. Because the market remains uncertain, it doesn’t look like a strong uptrend yet, and there is still a chance that prices will go down even more.
Uncertainty and Downtrend Risks
A well-known trader named Rekt Capital said that Bitcoin’s latest drop might have found a temporary bottom but could still go down even more. He said that Bitcoin’s price might stay stable around $93,500, but that doesn’t mean it won’t fall below that level again.
When Bitcoin dropped to $81,000, buyers stepped in, which crypto analyst Axel Adler saw as a good sign for the market.Â
Bitcoin’s Future Depends on Macroeconomics
The bigger picture of finance will have a big impact on Bitcoin’s price. The US Consumer Price Index (CPI) report on March 12 and the Federal Reserve’s interest rate decision on March 19 could significantly affect people’s attitudes about the market.
Kyle Chasse of Master Ventures thinks that Bitcoin will stay unstable until real buyers enter the market. Traders are looking for arbitrage opportunities right now, which makes things even less predictable. The Crypto Fear & Greed Index is still at 20, which means that people are still feeling very scared since February 25.
Conclusion
Bitcoin is showing signs of improving parts to say it will be hard to get above $94,000—Bitcoin pressure, market instability, and events that affect the whole economy. Bitcoin could keep Bitcoin below this critical level, likely to stay volatile until long-term investors step in. This means that its short-term future is very hard to predict.
