Bitcoin Price Analysis: BTC Back In The Red As Trade Tensions Deepen

Bitcoin (BTC) slumped below $82,000 as trade tensions continued to weigh heavy on market sentiments. The flagship cryptocurrency briefly spiked above $84,000 after the CPI report showed softer-than-expected inflation numbers. However, it could not sustain momentum and dipped back towards $83,000. 

BTC is marginally down during the ongoing session and trading around the $82,000 price level, with the CPI report failing to generate an expected bounce with traders concerned about tariffs, trade wars, and policy. 

Bitcoin (BTC) Fails To Rally Despite Lower-Than-Expected CPI Numbers 

The US CPI registered a 2.8% increase, lower than the forecasted 2.9%. Core CPI, which excludes food and energy, fell to 3.1%, slightly lower than the expected 3.2$. The markets responded to the numbers by increasing bets on Federal Reserve rate cuts. Traders have priced in a 31% chance of a rate cut in May, up from 9%. The probability of three rate cuts by the end of the year jumped to 32%, while the expectation of four rate cuts jumped to 21%. BTC briefly jumped past $84,000 on the back of the numbers but could not sustain momentum, dropping to $83,000 after failing to sustain momentum. Analysts pointed out ongoing trade tensions as a major factor limiting investor sentiment. 

Rumble Purchases 188 Bitcoin 

Video platform Rumble has announced the acquisition of 188 BTC for $17.1 million at an average cost of $91,000 per coin. The company had recently announced plans to allocate up to $20 million to Bitcoin as it branches out into the crypto sector. Rumble CEO Chris Pavlovski discussed Bitcoin’s role as a hedge against inflation and its alignment with Rumble’s broader strategy of crypto acquisition. 

“These holdings have the potential to serve as a valuable hedge against inflation and will not be subject to dilution like so many overprinted government-issued currencies.”

Rumble’s pivot to crypto and Bitcoin reflects a growing trend among companies, including Strategy and Marathon Digital, which have adopted the asset as part of their strategy. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) is struggling amid rising global tensions sparked by US President Donald Trump’s trade tariffs, which have weighed on investor sentiment. While the flagship cryptocurrency has maintained its position above $80,000, analysts are cautious about the future trajectory of the token. One analyst has predicted BTC could drop to $46,000 if it dips below a key support level, sparking concern in the broader crypto market. Analyst Ali Martinez has pointed out a historical pattern that could spell trouble for the asset. According to him, BTC follows a repetitive cycle when it slips below the 50-week moving average, explaining that the flagship asset had this support in 2014 and dropped further to test the 200-week moving average. The same cycle repeated itself in 2018 and again in 2022. According to Martinez, the 50-week moving average sits at $75,500, and a break below this level could see BTC dip to $46,000. The flagship cryptocurrency faces significant resistance at $95,000, a level it must overcome for consistent upward momentum. 

Meanwhile, another analyst said BTC must close the week above $89,000 to confirm its local bottom has passed. The analyst stated in a video on X, 

“The only way for Bitcoin to confirm that the bottom is actually in would be to close a weekly back above $89K.”

BTC last traded at $89,000 around March 7. The analyst considers this level crucial since it was the support area from where BTC ultimately ended up “breaking down below.” BTC is currently trading at around $81,300. A move past $89,000 would liquidate $1.60 billion in short positions, according to data from CoinGlass. However, if BTC fails to close above this level, it could decline and settle between $69,000 and $74,000. 

“It probably is likely at this point that going into the coming weeks or the coming months, Bitcoin will likely test this lower range at some point of support. “If we do get a weekly close above this area, I think the low is in for Bitcoin, and we are not going down to this area.”

Meanwhile, BTC is also facing a decline in demand in the US due to adverse macroeconomic conditions. 

BTC has traded primarily in the red since last week, starting with a steep decline on Monday. The price plummeted to a low of $81,500 on Tuesday as bearish sentiment intensified. However, it rebounded from this level to register an increase of 1.27% and settle at $87,316. Buyers retained control on Wednesday as BTC rose nearly 4% to reclaim $90,000 and settle at $90,369. However, it fell back in the red on Thursday, dropping almost 1% to slip below $90,000 and settle at $89,957. Bearish sentiment intensified on Friday as BTC fell 3.53% to $86,781. Sellers retained control over the weekend as BTC registered a marginal decline on Saturday and settled at $86,267.

Source: TradingView

The price plunged over 6% on Sunday as it fell below the 200-day SMA and $80,000, reaching an intraday low of $79,987 before settling at $80,736. BTC attempted a recovery on Monday, surging to an intraday high of $84,075. However, it lost momentum after reaching this level and dropped to a low of $77,414 before settling at $78,620. Sellers drove BTC to a low of $76,642 on Tuesday as selling pressure intensified. However, the price rebounded from this level to register an increase of 5.50%, reclaim $80,000 and settle at $82,945. Buyers retained control on Wednesday as BTC rose almost 1% and settled at $83,709. The current session sees BTC down over 3% and trading around $81,000. If bearish sentiment persists, BTC could dip below $80,000. Buyers will look to regain control and push the price above the 200-day SMA.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.