Bitcoin may struggle to stay above the USD 94,000 level and continue its rise, where it last traded on March 3. According to Bitfinex analysts, bitcoin may have difficulty surpassing the USD 94,000 level after a failed attempt to reach it again two days ago. Bitcoin fell below USD 94,000 on March 2 and has so far failed to regain that level.
Strong selling pressure
Bitfinex analysts link this prediction to the recent volatility following US President Donald Trump’s March 1 announcement in which he promised to create a cryptocurrency reserve. Bitcoin subsequently rose rapidly by 12% from USD 85,000 to USD 95,000. However, analysts point out that strong selling pressure in the spot market has already erased most of these gains. At the current price of USD 87,190, a return to USD 94,000 would mean a nearly 8% rise, according to CoinMarketCap data.
Analysts disagree on the short-term price of bitcoin. So far, there are no clear signals of an end to the decline or confirmation of impending growth. Pseudonymous trader Rekt Capital said on X on March 4 that the bottom of the correction may have already been reached. Yet, according to him, there is still a possibility of further decline. Bitcoin may remain stable around USD 93,500 in the coming days. However, this does not mean that its price will not fall below this level again.
Volatility will continue
Cryptocurrency analyst Axel Adler said in a post on the X platform that it is a good sign that buyers bought bitcoin when it recently fell to USD 81,000 . Honestly, I think we’ll have to wait until the end of the week because there’s a lot of macroeconomic data and events coming up. Said MN Trading founder Michaël van de Poppe.
February’s consumer price inflation (CPI) data will be released on March 12, a week before the Fed’s next interest rate decision, which is scheduled for March 19. Master Ventures founder Kyle Chasse warns that bitcoin will remain volatile until long-term investors enter the market. So far, he says, traders focusing on arbitrage opportunities are prevailing. The Cryptocurrency Fear and Greed Index, which measures market sentiment, currently shows a value of 20 in the Extreme Fear Zone, where it has been since February 25.
