Bitcoin sees Modest Recovery, Faces Challenges Ahead
Bitcoin’s price has seen a slight rebound from its monthly lows but is still struggling to break through the $85,000 resistance. On Saturday, BTC reached $84,525, marking a 10% increase from its lowest point this month. Though, it remains in a local bear market, down over 22% from its peak this year. As of now, it trades at around $84,335.
The cryptocurrency’s rise mirrors the performance of other assets like stocks and gold. The Dow Jones climbed over 650 points, while the S&P 500 and Nasdaq 100 surged by 117 and 450 points, respectively. gold hit a record high of $3,010.
Bitcoin’s recovery faces risks and opportunities. Investor fear is still high, as the fear and greed index sits at 22, indicating a fear zone. This fear has led spot Bitcoin ETFs to lose $143 million in assets, wiht weekly outflows totaling $870 million.
Technically, Bitcoin has formed a death cross, where the 50-day and 200-day Weighted moving Averages crossed.This often signals more downside. Bitcoin could retest its March 2024 high of $73,900.
Though, there are opportunities. The Federal Reserve’s meeting on March 18-19 could bring a dovish tone, hinting at interest rate cuts. This could boost Bitcoin and altcoins. Additionally, investors may embrace a risk-on sentiment and buy the dip, as seen during the COVID-19 pandemic.
