Bitcoin’s price is hovering around $85,000, and it’s looking a bit sluggish. Let’s break down what’s happening.
Below $90,000 – Again
Bitcoin keeps closing the week below the crucial $90,000 mark. This is making investors nervous. Even a small price jump earlier in the week wasn’t enough to change the overall gloomy feeling.
Global Tensions and Trade Wars
The ongoing trade war between the US and China is creating a lot of uncertainty in the markets. While there’s been a temporary pause on tariffs for most countries, the situation with China remains tense. This uncertainty is affecting risky investments like Bitcoin.
A Technical Squeeze?
Interestingly, Bitcoin’s price movement has been pretty quiet lately. But experts, like Big Cheds, are pointing out that the Bollinger Bands on Bitcoin’s 1-hour chart are getting really tight. This often means a big price swing is coming – either up or down. Nobody knows for sure which way it will go, but something’s about to happen.
Macroeconomic Factors Dominate
Bitcoin’s price is heavily influenced by the overall global economy. The US-China trade war is a major factor, and the threat of a global recession is looming large. This uncertainty is keeping Bitcoin’s price in a tight range between roughly $82,000 and $86,000.
Bulls vs. Bears: The Great Debate
Analysts are divided. Some think Bitcoin is already in a bear market, pointing to the fact that it hasn’t broken through key resistance levels. Others remain optimistic, believing Bitcoin could surge past $100,000 once the global economic situation improves.
The $90,000 Hurdle
The $90,000 price point is a major psychological barrier. If Bitcoin can’t break above it, it could fall back towards $78,000-$80,000. However, a strong push above $90,000 could send it towards $95,000.
What’s Next?
The next few days will be crucial. The weekly candle close is coming up, and that will give traders a clearer picture of Bitcoin’s short-term direction. Until then, it’s a waiting game.