#BTCRebundsBack Bitcoin Recovers Above $84,000 After Friday's Dip
After falling to a multi-month low of $78,200 on Friday, Bitcoin has rebounded, pushing above the key resistance level of $84,000. This recovery coincided with a broader market upturn in U.S. equities, where the Dow Jones and Nasdaq 100 indices saw gains of 165 and 80 points, respectively.
Several factors appear to have contributed to Bitcoin's resurgence. Notably, BlackRock reaffirmed its bullish stance, confirming its intention to allocate approximately 2% of its model portfolio to its IBIT ETF. This vote of confidence from the world's largest asset manager likely boosted investor sentiment.
Furthermore, the release of positive U.S. personal consumption expenditure (PCE) data provided additional support. The core PCE, a key inflation indicator monitored by the Federal Reserve, showed a 0.3% increase from December and a 2.6% year-over-year rise, the smallest annual increase since 2021. This data fuels hopes that inflation is moving closer to the Fed's 2% target, potentially paving the way for future interest rate cuts. However, potential new tariffs proposed by Donald Trump in March could complicate this outlook.
Diverging Analyst Predictions
Market analysts hold differing views on Bitcoin's future trajectory. Aurelie Barthere, principal research analyst at Nansen, anticipates a consolidation phase following the recent price drop. She suggests that the significant sell-off necessitates a period of price consolidation with higher lows to restore buyer confidence.
Conversely, Bloomberg analyst Mark Cudmore warns of further downside, even a potential "crypto winter." He points to the inherent volatility of Bitcoin, predicting another substantial crash, potentially triggered by a drop to the $72,000-$74,000 range.
Technical Analysis Points to Potential $72,850 Target
From a technical analysis perspective, Bitcoin formed a double-top pattern at $108,532, with a neckline at $89,000. The distance between the double-top and the neckline suggests a potential target of approximately $72,850. This aligns with Bitcoin's highest level from March 2023. A drop to this level could be viewed as a bullish signal, completing a break-and-retest pattern.$BTC
