Bitcoin Faces Challenges in Reclaiming $94,000: Analysts Weigh In

Bitcoin is currently facing difficulties in surpassing the $94,000 mark, following a recent failed attempt to regain this price level, according to analysts from Bitfinex.

In a report dated March 3, the analysts cautioned, "Any recovery to push the price above $94,000 might encounter significant resistance." Bitcoin's value slipped below $94,000 on March 2, and it has not successfully rebounded since then.

High Selling Pressure Affects Bitcoin's Price Stability

The analysts attribute their concerns to the heightened volatility in the market, which followed a recent announcement by US President Donald Trump on March 1. He pledged to create a crypto reserve, leading to a swift 12% surge in Bitcoin's price, from $85,000 to $95,000.

However, this rapid increase was short-lived as strong selling pressure in the Bitcoin spot market quickly erased most of those gains. As of now, Bitcoin is trading around $87,190, indicating that a resurgence to $94,000 would require nearly an 8% rise based on data from CoinMarketCap.

In the last 30 days, Bitcoin has experienced a decline of 7.12% according to CoinMarketCap.

The outlook on Bitcoin's price for the near future appears to be mixed among crypto analysts. There are no clear indicators pointing towards the end of the current downtrend, nor are there strong signals suggesting the start of an upward trend.

A well-known crypto trader, known as Rekt Capital, observed in a post on March 4 that while previous trends may indicate that Bitcoin's downside has reached a bottom, there remains a chance for additional declines.

Rekt pointed out that Bitcoin might establish some stability around the lower range of $93,500 in the coming days, but this does not guarantee that the price won't dip below that level again.

Market Volatility May Persist

Crypto analyst Axel Adler remarked in a March 4 post that it is a positive sign that buyers showed interest in Bitcoin when its price approached $81,000.

MN Trading's founder, Michaël van de Poppe, emphasized that we may need to wait until the end of the week for a better understanding, as there are several macro-economic data points and events on the horizon.

The US Consumer Price Index (CPI) for February is scheduled for release on March 12, just a week before the Federal Reserve's next interest rate decision on March 19.

In addition, Kyle Chasse, founder of Master Ventures, shared that Bitcoin is likely to continue experiencing volatility until genuine buyers rather than traders looking for quick profits start attracting attention in the market.

The current market sentiment, as measured by the Crypto Fear & Greed Index, sits at 20, indicating an “Extreme Fear” condition, a status it has maintained since February 25.

This article is for informational purposes only and does not constitute investment advice. All investment and trading activities carry risk, and it is essential for readers to conduct their own research before making any decisions.

Bitcoin, Resistance, Market