Bitcoin Faces Significant Resistance in Reclaiming $94,000: Analysts Insights

Bitcoin may find it difficult to surpass the $94,000 mark following a recent unsuccessful attempt to reclaim this price level, according to analysts from Bitfinex.

In their report on March 3, they noted that, "Any recovery to take the price back above $94,000 might face significant resistance." Bitcoin saw a decline below $94,000 on March 2 and has not managed to recover since.

Major Selling Pressure in Bitcoin Market

The analysts attributed this cautious outlook to the selling pressure in the Bitcoin spot market that has diminished the surge that followed a recent announcement by US President Donald Trump on March 1, which included a pledge for a crypto reserve. This announcement had initially driven Bitcoin's price up by 12%, jumping from $85,000 to $95,000.

Currently, Bitcoin is trading at approximately $87,190, highlighting that reaching $94,000 would require nearly an 8% increase, based on data from CoinMarketCap.

As of now, Bitcoin has decreased by 7.12% over the last 30 days. Source: CoinMarketCap

The short-term outlook shared by several crypto analysts suggests uncertainty, with no clear indicators that the current downtrend might be coming to an end, nor are there strong signs of a potential uptrend.

Rekt Capital, a well-known crypto trader, mentioned in a post on March 4 that while historical data might suggest the recent low could be close to the bottom, there remains a risk for further declines.

Additionally, Rekt pointed out that Bitcoin might stabilize around the lower level of $93,500 in the near term, but a dip below this price is still possible.

Volatility Expected Until Strong Buyers Enter Market

On March 4, crypto analyst Axel Adler remarked on social media that it was promising to see buyers stepping in when Bitcoin recently reached the $81,000 mark.

Michaël van de Poppe, founder of MN Trading, expressed that it might be wise to wait until the week concludes before observing any major shifts, especially with various macroeconomic data and events lined up.

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

Master Ventures founder Kyle Chasse stated that Bitcoin's price will likely continue experiencing volatility until authentic buyers, not just traders looking to take advantage of market discrepancies, enter the market.

The Crypto Fear & Greed Index, which gauges market sentiment, currently shows a score of 20, indicating “Extreme Fear.” This level of fear has persisted since February 25.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Every investment and trading action carries risk, and readers are encouraged to conduct their own research when making financial decisions.

Bitcoin, Resistance, Analysis