Bitcoin’s been having a rough time lately, struggling to climb back above $85,000. Since January, it’s lost over 29% of its value, leaving investors worried. Global trade worries and a shaky economy are hitting both crypto and the stock market, making it hard to predict what Bitcoin will do next.
The Bear Market and a Glimmer of Hope
The current trend is definitely bearish, but some analysts see a potential turnaround. One analyst highlighted that global liquidity is increasing rapidly. Historically, this has been good news for Bitcoin, often leading to big price jumps. If this pattern repeats, Bitcoin could see a buying spree soon.
However, for now, the bears are still in charge. Bitcoin needs to reclaim some key price points before a recovery can even begin. If the global economy stays unstable, Bitcoin could fall even further. The next few weeks will be crucial in determining whether Bitcoin stabilizes or continues its downward slide.
Bitcoin at its Lowest Since November 2024
Bitcoin is trading at its lowest point since November 10, 2024. The market’s been trending down since late January, and many investors are questioning if the bull market is over. Bitcoin hasn’t been able to break through key resistance levels, reinforcing the bearish sentiment and increasing the risk of further price drops.
Despite the downturn, the analyst’s observation about rising global liquidity still holds. If history repeats, Bitcoin might see a price increase around mid-April. But for that to happen, Bitcoin needs to hold onto its current support levels and regain some momentum.
The broader market slump is largely due to economic uncertainty and volatility since the US elections in November 2024. Worries about trade wars, unstable economic policies, and unpredictable market reactions are making it tough for risky assets like Bitcoin to rise. Until these economic concerns are resolved, Bitcoin will likely remain under pressure.
The $85,000 Hurdle
Bitcoin is currently trading around $83,300, and bulls are struggling to regain momentum. The $85,000 mark is key; breaking above it, especially the 200-day moving average, would signal renewed buying interest and a potential move towards higher prices. However, Bitcoin’s struggles at this level show that market confidence is low, and traders are hesitant to buy.
If Bitcoin can’t break above the 200-day moving average soon, a sharp drop below $80,000 is a real possibility, potentially triggering further sell-offs. The next few days will be critical in determining whether Bitcoin can recover or if the downtrend will continue.