Key Factors Affect k Bitcoin Price
The RSI indicator has also entered overbought territory, raising the possibility of near-term upswings, and the cryptocurrency is still up about 25% since the U.S. presidential election, despite slipping 5% since the start of the year.
Bitcoin's price has found a temporary floor after plummeting to $85,000, a 21% drop from its all-time high of $110,000, and remains at a critical juncture awaiting a catalyst, with macroeconomic trends set to dictate its next major move.
The market has stalled alongside a stock market slowdown due to economic uncertainty, and a record $1 billion has been pulled from US spot bitcoin ETFs. The cryptocurrency broke down below the neckline of a double top pattern on above-average volume, confirming the formation. Investors should watch crucial support levels on bitcoin's chart around $80,400 and $74,000, while also monitoring key resistance levels near $98,500 and $106,000.
The price drop was triggered by news of the Trump administration's tariffs, which investors view as inflationary and could scuttle possible stimulus this year. March is a key month for bitcoin, with the cryptocurrency having logged an even amount of positive and negative returns for the month between 2013 and last year. The double top pattern on the chart indicates a bearish trend, with the cryptocurrency making a slightly higher high last month and forming a comparatively shallower peak, signaling weakening price momentum.
As the market braces for Nvidia's earnings release, which could be a major AI-driven catalyst, and the Federal Reserve's interest rate cuts, investors will be closely watching the cryptocurrency's next move, with hopes that the Trump White House and a crypto-supportive Congress will adopt policies that support the asset class.
