The post What’s Next for Bitcoin Price Ahead of Q1 Close: A Rebond to $90,000 or a Plunge to $70,000? appeared first on Coinpedia Fintech News
It is quite evident that President Donald Trump’s divisive policies around job cuts and tariff wars have crashed the U.S. stock market. Meanwhile, a significant negative impact has also been seen in the crypto space, with Bitcoin continuing to trade under extreme bearish pressure. In the early trading hours, the price slipped to $76,600 in the times when it has been adopted by a U.S. strategic reserve. On the other hand, the trading volume has halved ever since the price failed to rise above $100K, which suggests a massive drop in the trader’s interest.
What’s Next—Is the Bitcoin Bear Market Begun?
The spot markets have been contributing to the volatility of the token, while the future market is considered to shed light on the price movements in the long term. Even if the spot volume drops, the volume in the futures remains elevated. Interestingly, the volume in both cases has dropped, suggesting the traders have become apathetic. Moreover, the future open interest has also dropped significantly since the last week of February, which substantiates the claim.
Secondly, the transaction count has been dropping consistently ever since the BTC price began to escalate in November 2024. This suggests the rise in the institutional involvement or the possibility of carrying out more large transactions, as the drop in the transaction count implies the drop in the trading activity of the retailers. With this, the volatility has been decreasing, which is not good for a healthy price action.
Both of the above on-chain indicators suggest a rise in the dominance of the institutions through a rise in the ETF holdings. The rise in ETF accumulation leads towards a rise in BTC value, while a drop impacts the price negatively. This suggests the impact of retail trading has been slashed to a large extent, and as a result, these traders usually turn as scapegoats during massive, long liquidations.
What’s Next? Is BTC Heading Back to Fresh Lows?
Since the price faced a rejection from the ATH, it has been constantly forming lower highs and lows. This suggests that the bulls have failed to reclaim their dominance, and as a result, every rebound is followed by a huge pullback. Currently, the price has displayed a bullish divergence, but it is expected to be short-lived as the Puell Multiple has remained neutral since the November breakout.
The indicator considers Bitcoin miners and their revenue. If the indicator drops to the lower green zone, it indicates the start of a bull run, as it happened back in 2018 and 2021. Currently, the levels are stuck between 0.98 and 1.41 around the average, which suggests the markets are stuck within a strong consolidation phase.
After losing the crucial support zone around $85,000, the price appears to have lost another pivotal support at $80,400. Therefore, with this, Bitcoin has completed a parabolic pullback, which could drag the levels lower. Hence, the BTC price continues to remain under bearish influence.
