Bitcoin Remains Under Selling Pressure Amid Cooling US Inflation Data
Bitcoin (BTC) remains under selling pressure despite cooling US inflation data, struggling to breach the resistance level of $84,000.
Market analysts advise caution and patience as investors await signals for potential upward momentum.
Bitcoin Price Nearing Local Bottom
- Analyst Doctor Profit suggests Bitcoin could find a local bottom between $68,000 and $74,000 based on the Market Value to Realized Value (MVRV) indicator.
- This projection holds if no major market disruptions occur.
- Justin Bennett highlights that Bitcoin closed below $92,000 in February, indicating continued resistance at this level in March.
- A monthly close above $92,000 is essential for stronger upside momentum.
Potential Price Drop Below $50,000
- Ali Martinez notes that Bitcoin may test its 200-week moving average (currently at $46,000) after falling below the 50-week moving average ($75,500).
- If support above the 50-week MA isn't regained, there is a risk of prices dropping below $50,000.
- Martinez also mentions an inverse head-and-shoulders pattern, suggesting a breakout above $84,000 could lead to a rally towards $91,000.
Investors are advised to wait for a confirmed breakout to determine the next directional move for Bitcoin.