Bitcoin Price Analysis: BTC Drops Below $85,000 As Price Action Remains Sluggish

Bitcoin (BTC) is struggling to build momentum as it recorded a marginal decline to slip below $86,000. The flagship cryptocurrency has been down nearly 1% over the past 24 hours and is trading at just under the $85,500 level. 

BTC has failed to push above $90,000, instead registering a drop despite President Donald Trump officially establishing a strategic reserve. Investors dumped their assets after it emerged the US had no immediate plans to purchase BTC. 

Robert Kiyosaki Rejects Bitcoin ETFs 

Renowned author Robert Kiyosaki has once again criticized traditional financial instruments. This time, it was spot Bitcoin ETFs that attracted his attention. Kiyosaki labeled Bitcoin ETFs as fake investments, adding that he preferred direct ownership of his assets like gold, silver, and Bitcoin. Kiyosaki’s criticism is because he believes ETFs, including those tied to Bitcoin do not give investors true ownership of the underlying asset, arguing that the financial products are managed by Wall Street Institutions, designed to keep investors financially naive. According to Kiyosaki, investing in ETFs exposes investors to assets that lack intrinsic value and compromise their financial security. 

Kiyosaki stressed the importance of tangible asset ownership, stating, 

“I would never buy gold, silver, or Bitcoin ETFs. In my opinion, ETFs are as fake as the U.S. dollar and U.S. bonds.”

Kiyosaki advocates for direct ownership of assets to hedge against inflation and economic downturns. He argued that physical gold, silver, and Bitcoin are more reliable stores of value than paper assets managed by financial intermediaries. The views align with his broader criticism of the centralized financial system and highlight his commitment to financial independence and education. 

“The problem is our educational system….lacking in credible financial education, Wall Street which counts on “stupid” investors, and a public gullible enough to believe their academic education will keep them safe in the real world of corrupt and criminal banksters who influence naive political leaders, will keep them safe in a world, if mega money….massive campaign contributions….to deceive the financially naive public.”

Bitcoin-Dollar Correlation Hints At New Highs 

Bitcoin (BTC) has struggled to reclaim $90,000 in recent sessions, with the flagship cryptocurrency facing considerable selling pressure and volatility. The markets have braced themselves for further volatility. However, analysts have also pointed out the Dollar’s recent plunge and its impact on BTC. James Coutts, Chief Crypto Analyst at Real Vision, provided a detailed analysis of the historical relevance of the declining US Dollar (DXY) with Bitcoin. With the DXY exhibiting its fourth-largest 3-day decline in history, Coutts believes it could catalyze new Bitcoin highs. 

Coutts backtested the correlation between DXY dips and Bitcoin trends. He noted that when the DXY drops more than 2.5%, BTC registers an increase 100% of the time, and when the DXY drops 2% or more, BTC rises 17 out of 18 times, with a 94% win rate over 90 days. With the DXY dropping by 3% between March 3 and March 6, Coutts has predicted new all-time highs for the flagship cryptocurrency by May 2025. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has declined during the current session after finding its feet above the $86,000 mark. The flagship cryptocurrency has struggled to build momentum and reclaim the $90,000 level since dipping below it on Monday. BTC’s latest decline took the price below $85,000, as price action remains muted despite President Donald Trump establishing a strategic Bitcoin reserve. While the price has not reacted as expected, analysts consider its creation to be bullish, with other nations expected to follow suit and establish their own Bitcoin reserves. A Bitcoin reserve also mitigates the fears of some institutional investors when purchasing BTC. Swan Bitcoin CEO Cory Klippsten believes BTC is in a consolidation phase. However, he stressed that the bull run had not ended. 

However, Bitfinex analysts say they expect BTC to be rangebound, as the government does not plan on additional purchases of the asset. 

BTC plunged below $80,000 last Friday as it fell to an intraday low of $78,173. However, it rebounded from this level to reclaim $80,000 and settle at $84,362, ultimately registering a marginal decline. Sentiment changed on Saturday as BTC rose over 2% and settled at $86,182. Bullish sentiment intensified on Saturday as the price surged over 9% to reclaim $90,000 and move past the 20-day SMA to settle at $94,322. However, the rally was short-lived as BTC fell nearly 9%, slipping below $90,000 and the 20-day SMA and settling at $86,225. BTC fell to an intraday low of $81,500 on Tuesday as selling pressure intensified. However, it rebounded from this level to register an increase of over 1% and settle at $87,316.

Source: TradingView

Buyers retained control on Wednesday, and BTC registered an increase of nearly 4% to move past $90,000 and settle at $90,639. The price faced volatility on Thursday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand, and BTC dropped almost 1%, slipping below $90,000 and settling at $89,957. Selling pressure intensified on Friday as the price fell nearly 4% to a low of $84,722 before settling at $86,781. Sellers retained control on Saturday as BTC registered a marginal drop and settled at $86,262. The current session sees BTC down over 2% and trading at $84,565 as sellers continue to dominate the market. If sellers retain control, BTC could drop toward the 200-day SMA. A break below this level could see the price drop to $80,000. Buyers will look to regain control and push BTC back above $90,000.

The RSI currently sits below the neutral zone while the MACD also indicates growing bearish sentiment, suggesting BTC could see a further decline.

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.