Bitcoin falls below $90,000! Market cool ahead of the U.S. cryptocurrency summit

Despite the possibility of the U.S. announcing a Bitcoin reserve plan within 24 hours, the Bitcoin price did not rise as expected. Instead, it dropped to an intraday low after the Wall Street opening on March 6, falling below the $90,000 mark. The market reacted coolly to the positive news surrounding the first White House cryptocurrency summit, with Bitcoin's price decreasing by 2% on the day.

Market performance is weak

Data shows that Bitcoin's price had previously risen to around $93,000 but failed to break through a key resistance level, ultimately retreating. Despite the upcoming cryptocurrency summit, the market's reaction to the potential Bitcoin or cryptocurrency reserve announcement has been tepid, with traders generally maintaining a cautious stance.

Well-known analyst Justin Bennett had previously predicted that Bitcoin would retest the support level at $78,000. He stated on social media: "This is a retest of the $92,000 resistance level. Although bulls attempted to break through, they were unsuccessful." He revealed that he had established a short position near $91,000.

Key resistance level contest

The anonymous founder of trading community Moriband Trading, Nihilus, pointed out that the Bitcoin futures market is facing a "moment of decision." He emphasized that $90,000 is a key support/resistance level on a daily timeframe. Another trader, Crypto Fella, held a more optimistic view, believing that despite a potential short-term drop, the upward trend for Bitcoin is far from over.

"Considering the volatility the cryptocurrency summit will bring tomorrow, the likelihood of a breakout is quite high. Of course, we may fall lower, but I believe this upward move is far from over," Crypto Fella stated.

Weak macroeconomic impact

Despite U.S. jobless claims data being lower than expected, the impact on the cryptocurrency market has been limited. Trading resource Kobeissi noted that the likelihood of the Federal Reserve cutting interest rates early is increasing, which is typically a key driver for cryptocurrencies and risk assets.