Bitcoin Wrestles with $90K Resistance: Profit-Taking and Macroeconomic Headwinds Cloud Bullish Outlook
Bitcoin (BTC) is currently trading under $87,000, facing strong headwinds after a volatile period triggered by U.S. President Donald Trump’s crypto strategic reserve announcement.
While an initial surge propelled Bitcoin BTC/USD towards $95,000, intense profit-taking and broader market corrections have since erased those gains. Analysts warn of “significant resistance” at the $94,000 level, suggesting Bitcoin may struggle to reclaim previous highs amidst uncertain market sentiment and macroeconomic pressures.
Market Sentiment: “Extreme Fear” Prevails Amidst Volatility
With a level it has held since February 25th, the Crypto Fear & Greed Index now rests at 20, squarely in the “Extreme Fear” zone. This great terror captures the uncertainty and uneasiness of the market. Emphasizing the general market fragility, pseudonymous trader Rekt Capital notes that although historical patterns might point to a possible bottom around $93,500, further downside deviations remain a clear possibility. According to analyst Kyle Chesse, volatility will continue until real long-term buyers join the market since present trading activity seems motivated more by short-term arbitrage possibilities than strong conviction.
Macroeconomic Headwinds: Tariffs and Recession Fears Weigh on Crypto
Adding to the problems of the market are developing macroeconomic ones. Cryptonomist notes that the newly imposed tariffs of U.S. President Trump have caused a notable worldwide financial markets correction. As seen by a forecasted US GDP drop in Q1 2025, the S&P 500 has lost post-election gains and recession concerns are rising. This more general “risk-off” trend is influencing crypto markets, which helps to explain Bitcoin’s recent price drop and higher volatility. Macroeconomic uncertainty, especially worries about a trade war, is also causing difficulties for Bitcoin miners according to JPMorgan researchers.
BTC’s Bullish Undercurrents: Long-Term Catalysts Remain in Play
Though there are short-term pessimistic signals, numerous elements provide Bitcoin’s long-term prospects some hope:
- Examining the US Purchasing Managers Index (PMI) shows a good trend in positive PMI. The manufacturing PMI has remained over 50 for two consecutive months following 26 months of contraction, suggesting a possible economic cycle positive reversal. Analysts match PMI data with the performance of Bitcoin to indicate that a continuous increasing trend in PMI could support a positive path for Bitcoin later on 2025 or early 2026.
- Rising M2 Money Supply: Globally Broadly speaking, the M2 money supply worldwide—a gauge of the money in circulation in the economy—has turned higher. According to historical study, Bitcoin’s price usually lags behind changes in worldwide M2, suggesting possible future increase pressure on its value.
- Steadfast Bitcoin Adoption: El Salvador Against demands from the IMF to stop accumulation, El Salvador President Nayib Bukele reiterated his will to keep buying Bitcoin. From a nation-state, this relentless determination points to ongoing belief in Bitcoin’s long-term viability.
- Lending funds is one of the new institutional-grade Bitcoin investing alternatives Blockstream, a bitcoin infrastructure company, is releasing. This project highlights the increasing institutional curiosity in Bitcoin as well as the creation of sophisticated financial solutions spanning the asset class.
BTC/USD Technical Analysis: Bearish Trendline Emerges Below $91,000
Recent technical study suggests a wary short-term future for Bitcoin. Bitfinex analysts believe that any effort to drive Bitcoin back above $94,000 is probably going to run across significant opposition. The heavy sell-pressure shown in the spot market highlights this prognosis; it has already nullified most of the Trump-induced surge.
Hourly charts show even more this negative attitude. Bitcoin is trading below the 100-hourly Simple Moving Average and has started a new fall below the $90,000 barrier. The hourly BTC/USD chart shows a connected negative trend line creating resistance at $91,000.
Stronger obstacles at $91,500 lead to identified immediate resistance levels at $88,750 and subsequently $90,000. Failing to cross the $90,000 resistance zone might set off another downturn with immediate support at $85,000 then big support around $83,200 and $82,250.
Technical indicators support this wary viewpoint even further. Although the Hourly RSI has edged back above 50, signaling a possible temporary stop in the downward momentum, the Hourly MACD is losing momentum in the bearish zone; so, not yet a strong positive reversal is indicated.
Bitcoin Price Prediction: Short-Term Resistance, Long-Term Potential
With immediate hurdles around $90,000-$91,500, Bitcoin is likely to encounter “significant resistance” regaining the $94,000 mark in the near term. Technical analysis indicates possible downside risk should $85,000 support fail to hold; key support zones include $82,250, $80,000, and the critical $78,800 level. Analyzes project ongoing volatility and uncertainty in the near future.
Looking ahead, macroeconomic data such the PMI and growing global M2 as well as ongoing adoption indications from El Salvador and institutional infrastructure development from companies like Blockstream point to a possibly positive longer-term picture. With some experts predicting a market cycle high in late 2025 or early 2026, Bitcoin could see a fresh upward trajectory if the favorable PMI trend and global liquidity expansion keep on.
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