Bitcoin will face ‘significant resistance’ reclaiming $94K: Analysts
Bitcoin’s recent attempts to regain the $94,000 threshold have met with significant resistance, as noted by analysts at Bitfinex. Their analysis reveals that after a brief surge to nearly $95,000 following U.S. President Donald Trump’s announcement of a crypto reserve on March 1, the digital currency has struggled to maintain its momentum. Currently trading around $87,190, much of that rapid gain has been erased due to intense selling pressure in the spot market.
In their March 3 market report, Bitfinex provided insight into the bearish sentiment currently impacting Bitcoin’s trajectory, warning that any recovery above the $94,000 mark is likely to encounter major obstacles. Given that Bitcoin is down approximately 7.12% over the past month, there are no clear signs pointing toward a reversal of this trend in the near term.
Pseudonymous crypto trader Rekt Capital highlighted in a recent social media post that, while there’s a historical precedent for Bitcoin bouncing back from similar downward trends, the possibility of further price declines remains plausible. He mentioned that Bitcoin might stabilize around $93,500 but warned against assuming that it won’t dip below this level again.
Market volatility is expected to continue until new, genuine buyers begin entering the market. Crypto analyst Axel Adler noted a positive sign with buyers stepping in as Bitcoin neared $81,000, suggesting that some interest remains among investors. However, with a wealth of macroeconomic data on the horizon, including the U.S. Consumer Price Index (CPI) data set for release on March 12 and the Federal Reserve’s interest rate decision scheduled for March 19, many analysts, including MN Trading’s Michaël van de Poppe, anticipate continued uncertainty in Bitcoin’s price movement.
Kyle Chasse of Master Ventures has remarked that the volatility in Bitcoin’s price is expected to persist until the market can attract serious buyers, rather than traders engaging in short-term arbitrage. This landscape is further underscored by the Crypto Fear & Greed Index, presently indicating “Extreme Fear” with a score of 20—a sentiment prevalent since late February.
As the crypto market navigates this period of turbulence, participants remain cautious, aware that substantial external economic factors will play a critical role in shaping Bitcoin’s short-term performance.
