According to analysts at Bitfinex, Bitcoin may find it challenging to surpass the $94,000 mark after its recent unsuccessful attempt to regain this price point just two days ago.
In a markets report dated March 3, Bitfinex analysts noted, “Any recovery that aims to push the price above $94,000 is likely to encounter considerable resistance.” Bitcoin (BTC) dipped below $94,000 on March 2 and has not managed to recover since.
Severe selling pressure in the spot Bitcoin market negates Trump’s gains
The analysts at Bitfinex attribute this forecast to the recent fluctuations following US President Donald Trump’s announcement on March 1 regarding a crypto reserve, which propelled Bitcoin’s price up by 12%, from $85,000 to $95,000, in a matter of moments.
However, they indicated that substantial selling pressure in the Bitcoin spot market has effectively wiped out most of these gains. As Bitcoin is currently trading at $87,190, returning to $94,000 would require nearly an 8% increase, based on data from CoinMarketCap.
Bitcoin is down 7.12% over the last 30 days. Source: CoinMarketCap
There seems to be a lack of consensus among cryptocurrency analysts regarding Bitcoin’s short-term price movement, with no clear indicators that the current downtrend has concluded or that an upward trend is on the horizon.
Rekt Capital, a pseudonymous crypto trader, mentioned in a post on X dated March 4 that while “history indicates the bottom might indeed be in during this downward deviation,” there is still a potential for further declines.
Rekt remarked that although Bitcoin might find some stability around the lower range of $93,500 in the coming days, it does not guarantee that the price will not “downside deviate” below that level again.
Market volatility expected until true buyers engage
In a post on X on March 4, crypto analyst Axel Adler commented that it is a “positive sign” that buyers were willing to acquire Bitcoin when it recently touched $81,000.
On the other hand, Michaël van de Poppe, founder of MN Trading, stated, “Honestly, I believe we’ll need to wait until this week concludes as there is a lot of macro-economic data & events at play.”
Related: Bitcoin price action echoes 2019 ‘Xi pump’; will new BTC lows materialize?
The US Consumer Price Index (CPI) for February is set to be released on March 12, in anticipation of the upcoming Federal Reserve interest rate decision on March 19.
Kyle Chasse, founder of Master Ventures, recently expressed that Bitcoin’s price will likely remain volatile until authentic buyers start to enter the market, moving away from traders merely looking for arbitrage opportunities.
The Crypto Fear & Greed Index, which gauges market sentiment, currently reflects a score of 20 in the “Extreme Fear” category, where it has consistently remained since February 25.
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This article is not intended as investment advice or recommendations. All investment and trading activities carry risks, and readers should undertake their own research prior to making any decisions.
