After a solid multi-day run, the primary cryptocurrency lost momentum again, dipping below $70,000.
Numerous analysts caution that the bears still control the market, expecting much more substantial price declines in the near future.
Where’s the Bottom?
The recent FOMC meeting, and especially Chairman Jerome Powell’s subsequent speech, poured cold water on BTC, which earlier this week touched $76,000 for the first time since the beginning of February.
Recall that America’s central bank kept interest rates unchanged for the second consecutive time this year, whereas Powell said the stubborn inflation remains an issue for the local economy. He also outlined the military conflict in Iran, describing the rising price of petrol as another hurdle.
His comments were unfavorable to the cryptocurrency market, whose total capitalization once again slipped below $2.5 trillion. As for Bitcoin, its valuation temporarily fell to as low as $69,500 and currently struggles to remain above that line.
Several analysts have weighed in on BTC’s performance, noting similarities between its recent price action and past cycles. X user Ted pointed out that the current structure closely mirrors the pattern seen in 2022, which ultimately led to a drop to around $16,000. If that historical parallel plays out again, he warned that the price could slip under $50K in the near term.
The analyst who goes by as bee on the social media platform outlined an analogous thesis. They suggested that BTC’s resurgence to nearly $76,000 has been a “fakeout” and bull trap, claiming that “we are still in a bear market” and the valuation could plummet to as low as $46,760 in the coming months. Leshka.eth joined the pessimists’ club, predicting a pullback to almost $53,000 sometime this summer.
The Bullish Case
However, it’s not all doom and gloom, as some key indicators signal BTC may experience another significant revival soon. For instance, whales snapped up 40,000 units in a matter of a single week, potentially positioning themselves for the next leg up. At the same time, spot Bitcoin ETFs have seen strong inflows, suggesting growing institutional demand.
The amount of coins sitting on crypto exchanges should also be mentioned. The figure has been gradually decreasing lately, and earlier today (March 19) dropped to a new six-year low of approximately 2.723 million. This means that many investors continue to abandon centralized platforms and move their holdings to self-custody, thereby reducing immediate selling pressure.
BTC Exchange Reserve, Source: CryptoQuant
Meanwhile, some analysts, such as Ali Martinez, expect a significant price boom based on the formation of certain setups. Just a few days ago, he noted that BTC’s funding rates have turned negative, and in the past, that has always been a precursor of a “major relief rally.” Martinez reminded that in August 2023, such a development was followed by a whopping 176% price increase for BTC.
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