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Bitcoin may struggle to hold and continue higher above the $94,000 price level it was last trading at on March 3, according to crypto analysts.
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Bitcoin may struggle to move above $94,000 after its failed attempt to reclaim the price level two days ago, Bitfinex analysts say.
“Any recovery to take the price back above $94,000 might face significant resistance,” Bitfinex analysts said in a March 3 markets report. Bitcoin (BTC) fell below $94,000 on March 2 and has yet to bounce back.
Strong spot Bitcoin market sell-pressure nulls Trump gains
The Bitfinex analysts linked this prediction to the recent volatility following US President Donald Trump’s March 1 announcement pledging a crypto reserve, which saw Bitcoin quickly surge 12% from $85,000 to $95,000.
However, the analysts said that intense selling pressure in the Bitcoin spot market has already erased most of those gains. With Bitcoin currently trading at $87,190, a move back to $94,000 represents an almost 8% increase, as per CoinMarketCap data.
Bitcoin is down 7.12% over the past 30 days. Source: CoinMarketCap
The consensus among crypto analysts for Bitcoin’s price in the short-term appears uncertain, with no apparent signs that the downtrend is over or strong signals of an emerging uptrend.
Pseudonymous crypto trader Rekt Capital said in a March 4 X post that while “history suggests the bottom may very well be in on this downside deviation,” further downside remains a possibility.
Rekt said that while Bitcoin may see some form of price stability around the range low of $93,500 over the coming days, it does not mean that the price won’t “downside deviate” below $93,500 again.
Volatility to reign until genuine buyers enter market
Crypto analyst Axel Adler said in a March 4 X post it was a “good sign” that buyers “bought up” Bitcoin when it recently tapped $81,000.
Meanwhile, MN Trading founder Michaël van de Poppe said, “Honestly, I think we’ll need to wait until this week is over as there’s a lot of macro-economic data & events.”
Related: Bitcoin price action mirrors 2019 ‘Xi pump,’ are new BTC lows incoming?
The US Consumer Price Index (CPI) for February is set for release on March 12, one week ahead of the next Federal Reserve interest rate decision on March 19.
Master Ventures founder Kyle Chasse recently said Bitcoin’s price will continue to experience volatility until genuine buyers start entering the market rather than traders seeking arbitrage opportunities.
The Crypto Fear & Greed Index, which measures market sentiment, shows a score of 20 in the “Extreme Fear” category, where it has been since Feb. 25.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
