Breaking News

Bitcoin Price Analysis: BTC Remains Pinned Under $85,000

Bitcoin Price Analysis: BTC Remains Pinned Under $85,000

Table of Contents

  1. New Bill To Build Bitcoin Reserve 
  2. Is The Bull Run Over?
  3. Bitcoin (BTC) Still The Market’s Best Bet 
  4. Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) ended the week down nearly 2% as it struggles to move past $85,000. The flagship cryptocurrency dipped below $80,000 earlier in the week, falling to a low of $76,985. It rebounded from this level to retake $85,000 as markets bounced on Friday before declining to its current level. 

BTC has been marginally down over the past 24 hours as macroeconomic factors weigh on investor sentiment. 

New Bill To Build Bitcoin Reserve 

A new House bill introduced by Trump ally Rep. Byron Donalds (R-FL) would enshrine into law President Donald Trump’s proposed Strategic Bitcoin Reserve. However, the bill has one critical difference from the legislation introduced in the Senate earlier this week. Unlike the Bitcoin Act proposed by Senator Cynthia Lummis, which would commit the US government to buy Bitcoin, Donald’s Reserve and Stockpile Act does not call for the purchase of Bitcoin. Instead, the proposed legislation would codify into federal law Trump’s recent executive order calling for a strategic Bitcoin reserve and Digital Asset Stockpile. Donalds said in a statement, 

“For years, the Democrats waged war on crypto. Now is the time for Congressional Republicans to decisively end this war.”

The legislation also mirrors the language in Trump’s executive order, which states the Bitcoin Reserve and Digital Asset Stockpile be seeded by assets seized during criminal and civil proceedings. Similarly, the bill authorizes the Treasury Secretary and Commerce Secretary to look for “budget neutral” ways of acquiring Bitcoin and other assets. White House officials have used similar language when discussing potential purchases of BTC by the federal government. The government possesses nearly 200,000 BTC from civil and criminal forfeiture. The proposal by Donalds gives the White House a less contentious avenue to codify its Bitcoin Reserve into law without compelling the government from buying up billions worth of BTC

Is The Bull Run Over?

Bitcoin (BTC) is struggling to break above the $84,000-$85,000 level. The flagship cryptocurrency is down over 10% year-to-date, down from around $94,000 on January 1 to its current level. One analyst shared an analysis that showed BTC is beginning to break below a critical support that has held strong for over a decade. If BTC stays below this level for weeks or months, it could signal the end of the current bull run. The flagship crypto’s underperformance is evident in significantly lower capital inflows into Bitcoin exchange-traded funds. Data from SoSoValue revealed that spot Bitcoin ETFs experienced almost $1.5 billion in net outflows year-to-date. 

BTC’s underperformance compared to gold casts doubt on the longevity of the bull market, with the crypto market cap declining over $600 billion to $2.74 trillion since the beginning of the year. 

Bitcoin (BTC) Still The Market’s Best Bet 

Fundstrat co-founder and managing partner Tom Lee remains optimistic about Bitcoin’s price trajectory this year. He also maintained a positive outlook on Donald Trump’s economic policies, stating that from a “shorter lens,” Trump’s actions look “very disruptive at the moment.” However, he argued that the structural impact of these decisions would be very positive. Lee also stated that despite market volatility, there are tangible drivers of productivity at play. He also reaffirmed his belief that BTC will be the top-performing asset in 2025. 

“Bitcoin is still our favorite idea for this year. So we think it’ll be the best-performing asset class, even better than gold.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has struggled in recent sessions, as it remains pinned below $85,000 despite a jump on Friday that briefly took the price above $85,000. However, analysts still believe the flagship asset can retrace its way back to $100,000, with a reversal likely in the near future. According to one analyst, BTC was eying a rally above $100,000, with $91,700, $102,700, and $109,356 the potential levels it could hit when it pivots toward $100,000. A rally to $109,356 would mark a new all-time high for the asset. 

BTC made a strong recovery after dropping to a low of $81,500 last Tuesday, rising nearly 4% on Wednesday to reclaim $90,000 and settle at $90,639. However, it lost momentum after reaching this level and registered a marginal decline on Wednesday, slipping below $90,000 and settling at $89,957. Bearish sentiment intensified on Thursday as the price dropped nearly 4% to $86,781, but not before hitting an intraday low of $84,722. Price action remained bearish over the weekend as BTC registered a marginal decline on Saturday and settled at $85,267. Selling pressure intensified on Sunday as BTC plunged below the 200-day SMA and $80,000 on its way to an intraday low of $79,987 before recovering to settle at $80,736.

Source: TradingView

Buyers attempted a recovery on Monday as BTC surged to an intraday high of $84,075. However, it lost momentum after reaching this level and dropped nearly 3%, slipping below $80,000 and settling at $77,414. BTC fell to an intraday low of $76,642 on Tuesday as selling pressure intensified. It rebounded from this level to reclaim $80,000 and settle at $82,943, ultimately registering an increase of 5.50%. Buyers retained control on Wednesday despite selling pressure, rising almost 1% to $83,709. However, BTC fell back into the red on Thursday, dropping over 3% and settling at $81,136. The crypto markets registered a sharp bounce on Friday as bullish sentiment returned. As a result, BTC rose nearly 4% to move past the 200-day SMA, reaching an intraday high of $85,363 before settling at $84,002. Buyers retained control on Saturday as BTC registered a marginal increase and settled at $84,398. However, the price is back in the red during the current session, down over 2% and trading below the 200-day SMA at $82,652.

If BTC continues to decline and slips below $80,000, it could drop towards $75,000. On the other hand, buyers will look to retake control and push the price back above the moving averages and the $90,000 price level. The MACD has turned bearish, indicating BTC could see an uptick in the near term. However, BTC has seen a substantial fall during the current session, with the price dipping below $83,000.

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.

Investment Disclaimer
Related Topics: 

Advertisement

You may like