This morning, the cryptocurrency prices continued to trend downwards, with Bitcoin briefly falling below the critical support level of $86,700. However, after hitting the bottom, it quickly rebounded to recover its losses, indicating strong buying power below. The current price is fluctuating around $87,500, with intense market competition between bulls and bears, and a short-term continuation of the range consolidation pattern is likely.
Technical analysis:
- Bitcoin has formed short-term support near $87,500, the MACD indicator shows a bottom divergence signal, and there are clear signs of recovery in the oversold RSI region. The 200-day moving average at $86,000 and the March low form a double support zone, constituting an important defense line, with trading volume increasing compared to previous days, indicating enhanced buying interest.
Favorable factors evolving:
• The Trump administration is about to hold a cryptocurrency summit (March 7), and the market expects favorable policy releases.
• Institutions like BlackRock are quietly increasing their holdings in Bitcoin mining stocks, and the Grayscale GBTC premium rate has narrowed to -18%.
• The Hong Kong Securities and Futures Commission will release virtual asset compliance guidelines next week, boosting confidence in the Asia-Pacific market.
Operational suggestions:
✅ Light long positions near $86,700, targeting $88,600 and $90,300
